Francis Company has 19,200 shares of common stock outstanding at the beginning of 2022. Francis issued 2,400 additional shares on May 1 and 1,600 additional shares on September 30. It also has two convertible securities outstanding at the end of 2022. These are: Convertible preferred stock: 2,000 shares of 8.5%, $50 par, preferred stock were issued on January 2, 2019, for $60 per share.
Q: On August 1, 2015, Toy Inc. purchased a new piece of equipment that cost $25000. The estimated…
A: Asset disposal : This involves removing assets from the accounting records.The disposal is…
Q: Because most of the parts for its irrigation systems are standard, Waterways handles the majority of…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding equivalent…
Q: Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the…
A: Adjusting entries are those entries which are required to be prepared to match the revenues and…
Q: Easton Pump Company's planned production for the year just ended was 20,000 units. This production…
A: 1. Answer: Production cost per unit under variable costing method= (Direct material+ Direct labor+…
Q: Joint Cost Allocation—Physical Units Method Board-It, Inc., produces the following types of 2 × 4 ×…
A: Joint production cost refers to the costs incurred in producing two or more products or services…
Q: Please help answer question 2 and 3 (+Analysis Component), thanks! Hammond Manufacturing Inc. was…
A: Financial statements are defined as the records that are prepared by the business entities as per…
Q: 21. The following list of accounts and their balances appear on the books of MJ Thai Spa as of…
A: A partnership is a legal entity formed by agreement between two or more persons for the purpose of…
Q: Shalom Company sold 20,000 units for P100 per unit. The variable cost per unit is P70 and the total…
A: A high margin of safety provides a company with financial stability, flexibility, and competitive…
Q: Can goodwill be amortized, and if so, how is it done?
A: Goodwill is an intangible asset since it reflects the surplus that a company pays to acquire another…
Q: The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace…
A: Internal transfer means where one independent department is transferring the goods to another…
Q: Take-a-Break Travel Company offers spring break travel packages to college students. Two of its…
A: Profit margin refers to the term which is defined as the difference among the aggregate cost for…
Q: Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: w.128. On January 1, 2021, Adams-Meneke Corporation granted 60 million incentive stock options to…
A: 1. Compensation cost of options = Number of stock options x Fair value of stock options =…
Q: The following information relates to Charleston Co.'s accounts receivable for 2021: Accounts…
A: Ending account receivable balance = beginning account receivable balance + sales - cash collected -…
Q: Moore Company sells both designer and moderately priced fashion accessories. Top management is…
A: A manager should make a decision based on the comparison made between the two alternatives. The…
Q: Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce…
A: Income statement is one of financial statements includes total expenditure and revenue for a…
Q: Part B By reference to the data in part A: 1. There are both quantitative and qualitative factors…
A: While decision making, managers should consider qualitative factors such as ; On the basis on the…
Q: Marian Company reported the following items for the month of July: Sales revenue $477,300 Cost of…
A: A financial ratio called days inventory outstanding (DIO) counts the number of days it takes for a…
Q: On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an…
A: A lease is an agreement taking place between the lessor and lessee where the lessor provides the…
Q: mework Warnerwoods Company uses a perpetual inventory system. It entered into the following…
A: Honor Code- Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of…
A: Allowance for Doubtful Accounts - Allowance is method of making provision for uncollectible…
Q: upert’s Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm…
A: Introduction Activity-based costing is a costing method that allocates the overhead costs of…
Q: Contribution Margin Per call
A: Contribution margin is the amount of revenue left over after covering the variable cost of the…
Q: The following information for the past year is available from Gas Company, a company that uses…
A: Formula : Fixed factory overhead production volume variance = Applied fixed overhead - Budgeted…
Q: Hagrid Gardening Corporation manufactures gardening products. The following information relates to…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: Given the following transactions of LAMA company during the year 2018. On October 1, 2018, the…
A: Adjusting entries are those which are reported in the books of accounts at the end of the period in…
Q: Support Department Cost Allocation-Direct Method Christmas Timber, Inc., produces Christmas trees.…
A: Answer:- Total cost:- Total cost is a cost that includes overhead costs, variable costs and fixed…
Q: Lampierre makes brass and gold frames. The company computed this information to decide whether to…
A: Solution: Total Manufacturing Overhead cost = Material cost + machine setups = $10,500 +…
Q: Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport.…
A: Flexible budget is the one which is prepared by the entity to estimate the future costs. It include…
Q: You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: d. If Janitorial costs were to be allocated based on square footage, and Security costs based on…
A: Cost allocation is the process of assigning a portion of a company's total costs to specific…
Q: Tech Systems manufactures an optical switch that it uses in its final product. Another company has…
A: Note : In make or buy decision making process the company should choose that option that provides…
Q: QS 18-6 (Algo) Computing ending work in process inventory LO P1 Compute ending work in process…
A: Formula: Ending WIP inventory = Beginning WIP inventory + Manufacturing Costs - Cost of goods…
Q: Sillytime Park competes with Summer World by providing a variety of rides. Sillytime Park sells…
A: The degree of operating leverage shows the change in the operating income as a result of change in…
Q: Find the gross income, the adjusted gross income, and the taxable income. A single man earned wages…
A: Adjusted Gross Income (AGI) is an individual's total income from all sources, minus certain…
Q: 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing…
A: Cost of goods sold (COGS) and gross margin are two important financial concepts related to the…
Q: On December 31, Jarden prepares a schedule of its December 31 accounts receivable by age. Expected…
A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…
Q: Which method is easier to compute? Multiple Choice effective interest method of accounting for…
A: An amortized bond is one in which the principal (face value) on the debt is paid down regularly,…
Q: Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and…
A: Activity Rate :— It is the rate used to allocate activity overhead cost to cost object under…
Q: Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Auditor's Report
A: The auditor's report typically includes a statement of the responsibilities of the auditor and…
Q: On September 1, a client paid the company $42,000 cash for six months of rent in advance and took…
A: Concept:- Unearned rent revenue, also known as deferred rent revenue, is a liability account that…
Q: what is the change in bonus expected for next year expected to be (assume rest of firm operates same…
A: First, let's calculate Mountville's residual income for the current year: Operating Income = Sales…
Q: Shalom Company manufactures socks that sell for P60 each. For the coming year, the management…
A: Contribution Margin is the amount that is arrived at after all the variable expenses of…
Q: For each separate situation, indicate whether Cruz Company should (a) record a liability, (b)…
A: 1. Cruz company guarantees the $101,000 debt of a supplier. It is not probable that the supplier…
Q: Barrett Company issued 9%, 5-year, €3,000,000 par value bonds that pay interest semiannually on…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Q: The following data pertain to Lawn Master Corporation’s top-of-the-line lawn mower. Variable…
A: Fixed expenses are those which do not change with the change in the production level. These expenses…
Q: In today's fast-paced business environment, decision making is a critical task for managers. Making…
A: Total manufacturing cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed…
Q: Apple, Inc. (AAPL), designs, manufactures, and markets personal computers (iPad) and related…
A: The book value of an entity is the net amount that separates its total assets from its total…
Q: Each of the following independent situations represents amounts shown on the four basic financial…
A: INTRODUCTION: Every firm must deal with a variety of business operations on a daily basis. These…
Francis Company has 19,200 shares of common stock outstanding at the beginning of 2022. Francis issued 2,400 additional shares on May 1 and 1,600 additional shares on September 30. It also has two convertible securities outstanding at the end of 2022. These are:
Convertible
Convertible bonds: Bonds with a face value of $200,000 and an interest rate of 5.0% were issued at par in 2018. Each $1,000 bond is convertible into 25 shares of common stock. To date, no bonds have been converted.
Francis earned net income of $71,000 during 2022. The income tax rate is 30%.
Required:-
1. Compute the number of shares of common stock that should use in calculating basic earning per share of 2022.
Step by step
Solved in 2 steps with 1 images
- Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
