Check my workProblem 19-18 (Static) EPS; stock options; nonconvertible preferred; convertible bonds; shares sold(LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9]At January 1, 2021, Canaday Corporation had outstanding the following securitles:600 million common shares20 million 6% cumulative preferred shares, $50 par6.4% convertible bonds, $2,000 million face amount, convertible into 80 million common sharesThe following additional information is available:On September 1, 2021, Canaday sold 72 million additional shares of common stock.• Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share, were outstanding at thebeginning and end of 2021. The average market price of Canaday's common stock was $18 per share during 2021.Canaday's net income for the year ended December 31, 2021, was $1,476 million. The effective income tax rate was 25%.Required:1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 20. (Round "Earnings pershare" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)NumeratorDenominatorEarnings per shareBasic%3DDiluted< Prev3 of 3NextMacBook Air

Basic EPS= Net income available to common stock holders/ Weighted average number of common stock Net…

Answered: Problem 19-18 (Static) EPS; stock…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

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Problem 20E

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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.
Computing Diluted EPS: Convertible Bonds and Convertible Preferred Stock Jones Corporation's capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 154,000 Convertible preferred stock, outstanding shares 14,000 8% Convertible bonds $1,400,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible in 28,000 shares of common stock. The 8% bonds are convertible into 42,000 shares of common stock. Net income for 2020 is $1,360,000. Assume that the income tax rate is 25%. Required a. Compute basic EPS for 2020. b. Compute diluted EPS for 2020. Note: Round earnings per share amounts to two decimal places. Net Income Available toCommon Stockholders Weighted Avg. CommonShares Outstanding PerShare Basic EPS Answer Answer Answer Diluted EPS Answer Answer Answer
(Note: This is a variation of E 19–17 modified to include convertible bonds).On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1,2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was$150 million. The income tax rate is 40%.Also outstanding at December 31 were incentive stock options granted to key executives on September 13,2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of$56 per share. During 2018, the market price of the common shares averaged $70 per share.In 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value.Required:Compute Berclair’s basic and diluted…
16 .During 2021, Sysco Corp. had 1,000,000 shares of common stock and 60,000 shares of 10% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $500,000 and $250,000 to common and preferred shareholders, respectively, during 2021.On January 1, 2020, Sysco issued $2,200,000 of convertible 6% bonds at face value. Each $1,000 bond is convertible into five common shares.Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%.What will Sysco report as diluted earnings per share for 2021, rounded to the nearest cent? Multiple Choice $6.04. $5.69. $5.93. None of these answer choices are correct.
Bonita Industries, has 4230000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 391000 more on July 1, 2021. On October 1, 2021, Bonita issued 19000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively? A. 5027750 and 5122750 B. 5027750 and 5422750 C. 5027750 and 5027750 D.
he following transactions are related to Gold Corp equity in 2020: Jan 5 Sold for cash 1,000 convertible bonds, 3 years, par $1,000 per share at $ 1,000,000. Present value bonds (without conversion rights) $947,605. 1 bond can be converted into 80 ordinary shares ( par @ $10). Mar 3 Purchased 20,000 treasury shares at $20 per share May 10 Sold for cash 1,000 bonds, 4 years, par $1,000 per share with share warrants for $ 1,050,000. Present value bonds without share warrants $990,000. Share warrant to buy 25,000 ordinary shares par $10 at $15 per share. Jun 9 Sold 12,000 treasury shares for a total price of $ 300,000 Jul 28 Announced $15,000 liquidating dividend 7 Aug 15,000 warrants used. The current market price for ordinary shares is $ 30 per share 28 Oct Paid liquidating dividend announced 28 Jul 31 Dec The remaining unused warrants have expired on 31 December 2019 Required: (MANDATORY present the calculation) a. Prepare journal entries to record the above transactions. b. If at…
Sunland Company, has 4170000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 393000 more on July 1, 2021. On October 1, 2021, Sunland issued 19800, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?
3. Akea Corp., reports this journal entry on May 15, 2020: Cash 75,000 Ordinary Share Capital 63,000 Paid in Capital in Excess of Par 12,000 The explanation reads. “Issued ordinary share capital for P50 per share”. Compute the no. of shares issued for this transaction?
At January 1, 2021, Canaday Corporation had outstanding the following securities:660 million common shares20 million 6% cumulative preferred shares, $50 par6.4% convertible bonds, $3,500 million face amount, convertible into 70 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $2,154 million. The effective income tax rate was 25%. Required:1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
At January 1, 2021, Canaday Corporation had outstanding the following securities:610 million common shares20 million 6% cumulative preferred shares, $50 par6.4% convertible bonds, $2,500 million face amount, convertible into 60 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday’s common stock was $20 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $1,576 million. The effective income tax rate was 25%. Required:1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021.
11. The following data of Slapshock Corporation as of December 31, 2019 showed the following: Preference share capital, P 100 par P 820,000; Ordinary share capital, P 30 par, 300,000 shares authorized, 100,000 shares issued and outstanding P3,000,000; Preference share premium P410,000; Ordinary share premium P3,300,000. What was the original issue price per share of preference share capital? 12. Using data in no. 11, what was the original issue price per share of ordinary share capital? 13. Using data in no. 11, how many shares of preference share capital were issued and outstanding as of December 31, 2019?
On January 2, 2021, Bramble Corp. issued at par $ 301000 of 6% convertible bonds. Each $1,000 bond is convertible into 60 shares. No bonds were converted during 2021. Bramble had 104000 shares of common stock outstanding during 2021. Bramble's 2021 net income was $ 153000 and the income tax rate was 35%. Bramble's diluted earnings per share for 2021 would be (rounded to the nearest penny) $ 1.40. $ 1.47. $ 1.35. $ 1.24.

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