Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 6% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Hanson paid dividends of $.60 per share on the common stock and $1.50 per share on the preferred stock. Each $1,000 bond is convertible into 40 shares of common stock. The net income for 2015 was $400,000 and the income tax rate was 30%. Basic earnings per share for 2015 is (rounded to the nearest penny) $1.57. $1.71. $1.80. $1.85.
Q: Bread Pitt had two classes of shares that were both issued on January 1, 2013: Class A, $100 par…
A: If preferred shareholder's are non-cumulative that means they will not be paid for unpaid dividend…
Q: On December 31, 2017, Berclair Inc. had 600 million shares of common stock and 7 million shares of…
A: Shares: - Total capital of a company s divided into units of small denominations. Each unit is known…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: A journal entry is made to record the financial transaction in the books of accounts. T-account: The…
Q: At January 1, 2016, Canaday Corporation had outstanding the following securities: 600 million common…
A: Earnings per share (EPS) are company’s profit which is divided by outstanding common stock per…
Q: On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000…
A: Earnings per share are the proportion which is utilized to ascertain what measure of benefit before…
Q: LASAY Company received dividends from its investments in ordinary shares during the year 2013 as…
A: Particulars Amount - Share Dividend from Company A (20000*P30) 600000 - Cash Dividend from…
Q: On December 31, 2017, Crane, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: At December 31, 2015 and 2016, Plank Corp. had outstanding 2,000 shares of $100 par value 8%…
A: The dividend is paid to shareholders from the retained earnings of the business. The preference…
Q: Oriole Company had 196000 shares of common stock, 19200 shares of convertible preferred stock, and…
A: When all the convertible securities of the company are converted, then the EPS (Earning per share)…
Q: Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10…
A: Introduction: Shareholders' equity which is also known as net worth of the company, is the owners…
Q: The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Grove Plc’s issued share capital is currently 8,000,000 ordinary shares of $0.50 each. On October 1,…
A: Basic EPS - Basic earning per share is the industry standard that is used by investors to analyze a…
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: Cracker Company had 2 million shares of common stock outstanding all through 2012. On April 1, 2013,…
A: EARNING PER SHARE (EPS) : = (NET INCOME - PREFERRED DIVIDENDS) / AVERAGE NUMBER OF COMMON SHARES…
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…
A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…
Q: A company sold 500 shares of stock at $5 each and issued 100 bonds at $1000 each in 2015. Now, the…
A: Given information : Number of shares issued = 500 Price per share = $5 Number of bonds issued = 100…
Q: 2. Gold Co. had 200,000 shares of common stock, 40,000 shares of convertible preferred stock, and…
A: Solution:- Given, Gold Co. had 200,000 shares of common stock 40,000 shares of convertible preferred…
Q: On January 1, 2018, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Formulas: ---------------------------------
Q: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
A: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
Q: Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock…
A:
Q: On December 31, 2017 Berclair Inc. had 520 million shares of common stock and 3 million shares of…
A:
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…
A: The purchase of own shares is known as treasury stock.
Q: During 2016, Goodfellow has the following transactions involving its common and preferred stock.…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Coy, Inc. initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2009. In 3. 2010,…
A: The treasury stock includes the own shares of the company that are repurchased from the…
Q: The net income of Charles Company for the year ended December 31, 2002 was $100,000. The following…
A: The question is related to Earnings per share. The Basic earnings per share is calculated with the…
Q: uring 2016, Oddie Corp. had net income of $300,000. Included in net income was after-tax interest…
A: Diluted earnings per share (diluted EPS) is the earnings per share of a company if all convertible…
Q: Information from the financial statements of Henderson-Niles Industries included the following at…
A: Compute the preferred dividends.
Q: In 2016, Western Transport Company entered into the treasury stock transactions described below. In…
A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…
Q: On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Given information is: Net Income = $21,00,000 Dividend to preference shareholders = $75,000
Q: For the year ended 31 December 2009, Dim-Cool Utility Company had net income of $1,750,000. The…
A: For year ended 31.12.2009, Dim- Cool Utility company had net income = $1750000 Company had Common…
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50…
A: Dividend arrears are paid for cumulative preferred stock. Arrears in Year 1 = 20,000*$50*6% Arrears…
Q: On January 1, 2016, Fascom had the following account balances in its shareholders' equity accounts.…
A: Stockholder's equity refers to the amount of assets which is left in the organization after paying…
Q: On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Items 21 and 22 are based on the Following Information: Fortunato Company had 200,000 ordinary…
A: Given information, On January 1st,2015, Number of ordinary shares outstanding = 200,000. Net income…
Q: On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 24,000…
A: Answer- Part 1 - Computation of Basic Earnings per share- Income after 7% dividend on cumulative…
Q: LASAY Company received dividends from its investments in ordinary shares during the year 2013 as…
A: Step 1 In the financial statements, the dividend in kind is reported as increase in the investment…
Q: In 2014, Eklund, Inc., issued for $103 per share, 70,000 shares of $100 par value convertible…
A: Preference shares and common stock shares are two types of shares that are being issued by the…
Q: Colson Corp. had $750,000 net income in 2015. On January 1, 2015 there were 200,000 shares of common…
A: Given, Net Income = $750,000
Q: On January 1, 2017, Browning Corporation had 75,000 shares of $1 par value common stock issued and…
A:
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and…
A: 4)Calculation of the Basic earnings per share for 2015 as follows:- Formula:- Basic earning per…
Q: Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017,…
A: The weighted average number of share outstanding are calculated by multiplying the number of months…
Q: Francis Company has 24,000 shares of common stock outstanding at the beginning of 2016. Francis…
A: Shares refer to the owner's equity which is obtained by the potential investor from investing in a…
Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 6% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Hanson paid dividends of $.60 per share on the common stock and $1.50 per share on the preferred stock. Each $1,000 bond is convertible into 40 shares of common stock. The net income for 2015 was $400,000 and the income tax rate was 30%.
- Basic earnings per share for 2015 is (rounded to the nearest penny)
- $1.57.
- $1.71.
- $1.80.
- $1.85.
Step by step
Solved in 2 steps
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- 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. 3,370,000Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing 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.
- The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.Percy 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?Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.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.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.
