In connection with the audit of Dreamy Company's financial statements for the year ended December 31, 2021, your audit senior asked you to analyze the company's stockholders' equity section and provide him with certain figures. The stockholders' equity sections of the company's comparative balance sheets as of December 31, 2021 and 2020 are presented below: 12.31.2021 12.31.2020 12% Preferred stock, P100 par Common stock, P10* par Paid-in capital in excess of par - preferred Paid-in capital in excess of par common Paid-in capital from treasury stock Retained earnings Total stockholders' equity P 330,000 P 270,000 1,642,400 53,600 257,200 7,200 1.884.800 P4,175.200 P3.729,440 1,598,400 36,800 235,200 3,200 1.585.840 * Par value after May 31, 2021 stock split. Dreamy had 65,000 common stock outstanding as December 31, 2019. The following stockholders' equity transactions were recorded in 2020 and 2021: 2020 May 1 July 1 July 31 - Sold 9,000 common shares for P24, par value P20. Sold 700 preferred shares for P124, par value P100. - Issued an 8% stock dividend on common stock. The market value of common stock was P30 per share. - Declared cash dividends of 12% on preferred stock and P3 per s' on common stock. - Net income for the year amounted to P1,345,040 Aug. 30 3/5 Dec. 31 2021 Feb. 1 - Sold 2,200 common shares for P30. - Sold 600 preferred shares for P128. May 1 May 31 - Issued a 2-for-1 split of common stock. The par value of the common stock was reduced to P10 per share. - Purchased 1,000 common shares for P18 to be held as treasury stock. Sep. 1 Oct. 1 - Decdared cash dividends of 12% on preferred stock and P4 per share on common stock. - Sold 1,000 shares of treasury stock for P22. Nov. 1 Question: Compute the basic earnings per share for the year 2020 and 2021. ...
In connection with the audit of Dreamy Company's financial statements for the year ended December 31, 2021, your audit senior asked you to analyze the company's stockholders' equity section and provide him with certain figures. The stockholders' equity sections of the company's comparative balance sheets as of December 31, 2021 and 2020 are presented below: 12.31.2021 12.31.2020 12% Preferred stock, P100 par Common stock, P10* par Paid-in capital in excess of par - preferred Paid-in capital in excess of par common Paid-in capital from treasury stock Retained earnings Total stockholders' equity P 330,000 P 270,000 1,642,400 53,600 257,200 7,200 1.884.800 P4,175.200 P3.729,440 1,598,400 36,800 235,200 3,200 1.585.840 * Par value after May 31, 2021 stock split. Dreamy had 65,000 common stock outstanding as December 31, 2019. The following stockholders' equity transactions were recorded in 2020 and 2021: 2020 May 1 July 1 July 31 - Sold 9,000 common shares for P24, par value P20. Sold 700 preferred shares for P124, par value P100. - Issued an 8% stock dividend on common stock. The market value of common stock was P30 per share. - Declared cash dividends of 12% on preferred stock and P3 per s' on common stock. - Net income for the year amounted to P1,345,040 Aug. 30 3/5 Dec. 31 2021 Feb. 1 - Sold 2,200 common shares for P30. - Sold 600 preferred shares for P128. May 1 May 31 - Issued a 2-for-1 split of common stock. The par value of the common stock was reduced to P10 per share. - Purchased 1,000 common shares for P18 to be held as treasury stock. Sep. 1 Oct. 1 - Decdared cash dividends of 12% on preferred stock and P4 per share on common stock. - Sold 1,000 shares of treasury stock for P22. Nov. 1 Question: Compute the basic earnings per share for the year 2020 and 2021. ...
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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Transcribed Image Text:In connection with the audit of Dreamy Company's financial statements for the year ended
December 31, 2021, your audit senior asked you to analyze the company's stockholders' equity
section and provide him with certain figures. The stockholders' equity sections of the company's
comparative balance sheets as of December 31, 2021 and 2020 are presented below:
12.31.2021
12.31.2020
12% Preferred stock, P100 par
Common stock, P10* par
Paid-in capital in excess of par - preferred
Paid-in capital in excess of par common
Paid-in capital from treasury stock
Retained earnings
Total stockholders' equity
P 330,000 P 270,000
1,642,400
53,600
257,200
7,200
1.884.800
P4,175,200 P3.729,440
1,598,400
36,800
235,200
3,200
1.585.840
* Par value after May 31, 2021 stock split.
Dreamy had 65,000 common stock outstanding as December 31, 2019.
The following stockholders' equity transactions were recorded in 2020 and 2021:
2020
May 1
July 1
July 31 - Issued an 8% stock dividend on common stock. The market value of
- Sold 9,000 common shares for P24, par value P20.
- Sold 700 preferred shares for P124, par value P100.
common stock was P30 per share.
Aug. 30 - Declared cash dividends of 12% on preferred stock and P3 per s'iars
3/5
on common stock.
Dec. 31 - Net income for the year amounted to P1,345,040
2021
- Sold 2,200 common shares for P30.
- Sold 600 preferred shares for P128.
Feb. 1
May 1
May 31 - Issued a 2-for-1 split of common stock. The par value of the common
stock was reduced to P10 per share.
- Purchased 1,000 common shares for P18 to be held as treasury stock.
- Declared cash dividends of 12% on preferred stock and P4 per share
on common stock.
- Sold 1,000 shares of treasury stock for P22.
Sep. 1
Oct. 1
Nov. 1
Question:
Compute the basic earnings per share for the year 2020 and 2021.
...
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