January 1, 2016, Hage Corporation granted options to purchase 9,000 of its common shares at $7 each. The market price of common stock was $9 per share on March 31, 2016, and averaged $9 per share during the quarter then ended. There was no change in the 50,000 shares of outstanding common stock during the quarter ended March 31, 2016. Net income for the quarter was $8,268. The number of shares to be used in computing diluted earnings per share for the quarter is a. 50,000 b. 52,000 c. 53,000 d. 59,000
Q: Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and…
A: Total preferred dividend = no. of preferred shares x dividend per share = 20000 x 1.5 = $30,000
Q: On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: We'll not play LLC had 1,000,000 average shares outstanding during all of 2017. During 2017, WNP…
A: For the purpose of computing diluted earnings per share, share to be used in the denominator in…
Q: On December 31, 2015, Raja Corporation's balance sheet reported the following: The following…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: On November 12, 2013, Berube Co. repurchased 10,000 shares of its own stock at a price of $20 per…
A: Date Accounts Debit Credit Nov. 12, 2013 Treasury stock (10000 shares x $20 per share) $200,000…
Q: Fox Company made the following transactions in the common stock of NOP Company:…
A: As per IFRS 9, Financial instruments, any financial asset classified as trading security is measured…
Q: Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The…
A: a) Computation:
Q: At December 31, 2015, the balance sheet of Meca International included the following shareholders’…
A: 1.
Q: On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1, it…
A: Common shares are issued by the company to fulfil its capital requirements. The common shareholders…
Q: The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been…
A: The Number of shares issused at the end of 2015: 795 millionAs there is no transaction of…
Q: On January 1, 2020, Hage Corporation granted incentive stock options to purchase 26,000 of its…
A: Proceeds from the exercise of options = 26000 * $ 7 = $ 182000
Q: Berg Company adopted a stock-option plan on November 30, 2016, that provided that 70,000 shares of…
A: Stock option: It is a right to buy a particular number of shares of the company, at a particular…
Q: If Frank Corporation sells 100,000 shares of its new $1 par value common stock to investors for $1…
A: Journal entry for the sale of common stock is:
Q: On December 30, 2015, Ella Thornes Inc has 2,000 8% preference stocks issued w/ USD200 par value and…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had…
A:
Q: On January 31, 2015, Village Bank had 500,000 shares of $2 par value common stock outstanding On…
A: Earnings per share: =Net income / Common stock outstanding
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: n April 2, 2011, Caesar Corporation’s BOD declared a 15% stock dividend for stockholders on record…
A: The question is based on the concept of Financial Accounting. When a dividend is declared the amount…
Q: On April 13, 2017, Yext Inc. completed its IPO on the NYSE. Yext sold 10,500,000 shares of stock at…
A: (a)Given,Number of Shares Sold = 10,500,000Offer Price per Share = $11 Calculation of total proceeds…
Q: Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2017. On May 1, Tomba…
A:
Q: Culver Corporation reported net income of $682,000 in 2017 and had 217,000 shares of common stock…
A:
Q: Grant, Inc. had 60,000 shares of treasury stock ($10 par value) at December 31, 2014, which it…
A: No. of shares of treasury stock at December 31, 2015 = No. of shares of treasury stock at December…
Q: Anderson Steel Company began 2016 with 600,000 shares of common stock outstanding. On March 31,…
A: Computing weighted average shares outstanding: Weighted average shares = Number of shares sold x…
Q: On April 1, 2017, the directors of ABC Ltd issued 1,00,000 equity shares of BDT 10 each at BDT 12…
A: given On April 1, 2017, the directors of ABC Ltd issued 1,00,000 equity shares of BDT 10 each at…
Q: Kingbird Corporation had 270,000 shares of common stock outstanding on January 1, 2017. On May 1,…
A:
Q: Lerner Company had the following transactions in 2017, its first year of operations: Issued 20,000…
A: The following computations are done for Lerner Company.
Q: Adams Industries holds 40,000 shares of FedEx common stock. On December 31, 2015, and December 31,…
A:
Q: Macaroon Inc. has net income for 2016 of $272,000. At January 1, 2016, the company had outstanding…
A: Working note: Computation of weighted average number of common shares outstanding: Weighted average…
Q: Crystal Arts, Inc., had earnings of $291,600 for 2016. The company had 30,000 shares of common stock…
A: Earning per share serves as an indicator of a company's profitability. And calculates as a company's…
Q: Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2016.…
A:
Q: has no preferred stock outstanding. The company had 40,000 shares of common stock outstanding on…
A: Given : The company had 40,000 shares of common stock outstanding 12,000 additional shares Net…
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: On October 1, 2015, Adoll Company acquired 1,000 shares of its $1 par value stock for $44 per share…
A: The company can raise capital by issuing financial instruments of the company. The financial…
Q: In January 2014, ABC Corporation, a new corporation, issued 10,000 shares of common stock with a par…
A: some times companies repurchase its own shares to prevent the dilution of the ownership of the…
Q: Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary…
A: a.
Q: In 2015, Eklund, Inc., issued for $103 per share, 80,000 shares of $100 par value convertible…
A: Amount credited to common stock = No. of preferred stock x conversion ration x Par value per common…
Q: Glen Tay Inc. had issued 24,000 shares of its no-par common shares on April 1, 2017 for property…
A: Journal entry is a process of recording business transactions into books of accounts initially. This…
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: During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the…
A: Answer: Option c.
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…
January 1, 2016, Hage Corporation granted options to purchase 9,000 of its common shares at $7 each. The
market price of common stock was $9 per share on March 31, 2016, and averaged $9 per share during the
quarter then ended. There was no change in the 50,000 shares of outstanding common stock during the quarter
ended March 31, 2016. Net income for the quarter was $8,268. The number of shares to be used in computing
diluted earnings per share for the quarter is
a. 50,000
b. 52,000
c. 53,000
d. 59,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, 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 heldtomaturity 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 45, 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 (l). 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 1. Journalize the selected transactions. 2. 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.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)
- 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.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.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.
- According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?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.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.
- 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.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?
