Stampede Inc. (SI) is a public company. On January 1, 2020, 65,000 common shares were issued and outstanding. During the year: 15,000 additional common shares were issued on April 1. 20,000 preferred shares were issued on June 1; these shares are non-cumulative and carry an annual dividend entitlement of $2 per share. No dividends were declared. Net income was $2,000,000. What is the basic EPS for SI for its fiscal 2020 year end? Question 23 options: a) $22.75 b) $25.00 c) $25.70 d) $26.23
Q: The Maria Incorporated was established in 2018. The Corporation issued 100,000, ₱20 par value shares…
A: Solution: Statement of Changes in Equity of Maria Incorporated for the year 2019 is as under:
Q: On January 1, 2021, Sunland Corp. had 459,000 shares of common stock outstanding. During 2021, it…
A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: Macanas Company had 125,000 shares issued as of January 1, 2018, which includes 25,000 treasury…
A: Answer) Calculation of Number of shares issued Number of shares issued = Total number of shares…
Q: On December 31, 2022, Voice Company had 500,000 ordinary shares issued and outstanding, 400,000 of…
A: SOLUTION- COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES - DATE NUMBER OF SHARES MONTHS…
Q: During 2021, R Co. had the following two classes of stock issued and outstanding for the entire…
A:
Q: Fancher Company has a single class of common stock and a single class of cumulative preferred stock.…
A: Dividend is the amount which is to be paid to the stock holders of an entity. The stockholders may…
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: EPS means net earnings on a single share. Firm use equity funds to generate a profit. EPS show how…
Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: calculation of above requirement are as follows
Q: On January 1, 2021, Windsor Corp. had 488,000 shares of common stock outstanding. During 2021, it…
A: Since the student has posted multiple requirements, we shall answer the first three alone. Thank…
Q: Of the total amount of dividends declared during 2021, how much will be received by preferred…
A: Dividend on preference shareholders is a priority above common shareholders. They are always paid…
Q: 77,000 shares authorized and issued* 1,232,000
A: A Dividend is a payment given to stakeholders by a corporation. When a firm makes a profit or has a…
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: (1) Allocation of dividends to each class of stock, assuming that the preferred stock is 9% and not…
Q: On January 1, 2021, Thomson Inc. had the following account balances in its shareholders' equity…
A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…
Q: Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The shareholders' equity section of Charles Corporation at December 31, 2018 included the following:…
A: Preferred dividends are the dividends that are accrued paid on a company's…
Q: Oakwood Inc. Is a public enterprise who shares are traded in the over-the-counter market. At…
A: Income tax adjustment=Prior period adjustemnent-After tax value=$300,000-$210,000=$90,000
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba…
A: Weighted average number of shares refers to number of shares after incorporating change in shares…
Q: On January 1, 2021, Wildhorse Corporation had 980,000 shares of common stock outstanding. On March…
A: Note: Assume that the accounting period of Company starts in January and ends in December of every…
Q: Paris Co. has a December 31 year-end date. Data for 2021 shows: • There were 60,000, $3, cumulative…
A: Number of common shares Common shares as on January 1 370000 Shares issued 60000 Less; shares…
Q: Gogalor Co. was incorporated on January 1, 2020. Upon inspection of its stock and transfer book, the…
A: Number of outstanding shares means number of shares which are issued and outstanding in the name of…
Q: Garda World Security Corporation has the following shares, taken from the equity section of its…
A: Dividend - Dividend is the amount paid by the company to its preference and common shareholder's.…
Q: The Topeka Corporation has 40,000 shares of P30 par value ordinary shares outstanding. On July 1,…
A: The stock dividend is a method of capitalizing the retained earnings. it is issued in a proportion…
Q: Ayayal Corporation was organized on January 1, 2022. It is authorized to issue 10,000 shares of 8%,…
A: Stockholders equity is one of the important component of balance sheet of the company. It includes…
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: Earnings per share (EPS) is calculated by dividing the net income earned by the Company by the…
Q: Buffalo Limited has the following information available regarding its share capital at December 31,…
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: Sunland Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: Stock refers to the shares of which the ownership of company is divided whereas the preferred stock…
Q: Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On January 1, 2020, Addy Company had 110,000 shares issued and 100,000 shares outstanding. The…
A: Gven, Shares outstanding on Jan 1, 2020 = 100,000 shares Shares issued on march 1 = 15,000 Treasury…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Particulars Amount ($) Preferred Stock, $100 par value, 10000 authorized, 5000 issued and…
Q: LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common…
A: Stockholder’s equity is a part of balance sheet which shows the total owner’s equity that is…
Q: Dayton, Inc. had 100,000 shares of common stock outstanding at January 1, 2022. On March 31, 2022,…
A: EPS is calculated using the below given formula: EPS=Earnings available to common…
Q: ry corporation is a mid sized public company that had been in operation for many years. December 31,…
A: Closing entries are accounting entries made to close the books of accounts. They are used to close…
Q: Show
A:
Q: On January 1, 2021, marine company had 125,000 issued shares and 25,000 treasury shares. During the…
A: No. of shares issued means shares issued by the company including the shares purchased by the…
Q: Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter market. At…
A: Shareholders Equity section of balance sheet shows all total amount attributable to equity…
Q: Sheridan Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: Value of preferred stock=Number ofshares×Par value=2050×$50=$102,500
Q: Buffalo Limited has the following information available regarding its share capital at December 31,…
A: The dividend represents the distribution of proot among the shareholders of the company. It is…
Q: Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on…
A: Earnings per share is used to measure income earned per share. Earnings per share is equal to…
Q: On January 1, 2021, Covid, Inc. had the following account balances in its shareholders' equity…
A: Working notes of statement of other equity is as follows: Resultant table:
Q: LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common…
A: When the treasury stocks are re-issued at a price more than its cost then Additional paid-in capital…
Q: On January 1. 2021, Novak Corp. had 502,000 shares of common stock outstanding. During 2021, it had…
A: Solution:- Weighted average number of shares outstanding as of December 31, 2021 Transaction…
Q: Cole Company was formed on January 1, 2022, when 300,000 shares of $2 par value common stock were…
A: Common stock : 300,000 shares x $2 par value per share = $600,000 Additional Paid-in capital -Common…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: The dividends are declared from the retained earnings balance.
Q: Hideo Co. was organized on January 1, 2021, with 300,000 shares of common stock with a $6 par value…
A: Cost method of treasury stock is simple as it considers the cost that is paid to repurchase that…
Q: Carlmont Corporation is authorized to issue 5,000,000 shares of $2 par value common stock. As of…
A: The treasury stock shares decreases the number of outstanding chares. The dividend is declared for…
Q: Kedzie Corporation was organized on January 1, 2019, with an authorization of 5,000,000 shares of $2…
A: Formula: Common stock value = Shares issued x PAR value Multiplication of PAR value with Shares…
Q: On December 31, 2020 and 2021, Jimenez Corporation had 100,000 shares consisting of 90,000 shares…
A:
Q: Whispering Ltd. began its latest fiscal year on January 1, 2020, with 12,000 common shares…
A: The weighted average common shares are the common equity shares outstanding at the end of the year…
Q: LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common…
A: Additional Paid in Capital from Treasury stock represents the excess amount over its cost generated…
Stampede Inc. (SI) is a public company. On January 1, 2020, 65,000 common shares were issued and outstanding. During the year:
- 15,000 additional common shares were issued on April 1.
- 20,000
preferred shares were issued on June 1; these shares are non-cumulative and carry an annual dividend entitlement of $2 per share. - No dividends were declared.
- Net income was $2,000,000.
What is the basic EPS for SI for its fiscal 2020 year end?
Question 23 options:
|
|
||
|
|
||
|
|
||
|
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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. 3,370,000Anoka 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?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.
- EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 6% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.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.
- The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.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.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.
- Outstanding 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.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.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.