Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2021. Additional Information: Common shares outstanding at Jan. 1, 2021 Incentive stock options (vested in 2020) outstanding throughout 2021 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.40 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $34,000 of 10% short-term bank notes. The company's income tax rate is 25%. Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations) Basic Diluted Numerator 1 1 1 Denominator = = = 75,000 12,000 Earnings per Share
Q: What the agi
A: AGI means Adjusted Gross Income. It is the total income on which income tax payable would be…
Q: Your firm needs a computerized machine tool lathe which costs $59,000 and requires $12,900 in…
A: After tax salvage value can be calculated using this formula: After tax salvage value = selling…
Q: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 210,000 $…
A: Flexible budget is based on actual level of activity. Cost are estimated in flexible budget through…
Q: List several common intangible assets. How is the life determined that is to be used to compute…
A: Intangible assets are the assets, which are in the control of an enterprise and which are not…
Q: Common Stock, Par Value $2.00; Authorized 100,000 shs, Issued and Outstanding 50,000 shares =…
A: The stock split is a process in which the company breaks down its share into the number of shares.…
Q: Determining missing items in return and residual income computations Data are presented in the…
A: ROI=Net income/ Operating assets Dollar=Average Operating Assets * Minimum ROI Residual…
Q: Below were selected transactions of FDNACCT Services during the month of September: • Received…
A: Under the accrual concept of accounting, only the revenues that are accrued are treated as revenues…
Q: Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year…
A: A balance sheet is a financial statement that reports a company's assets, liabilities, and…
Q: Prepare a partial balance sheet for these amounts. Property, Plant and Equipment (net) $ Goodwill $…
A: Balance sheet is one of the basic financial statements prepared by a company. It is also called as…
Q: To reduce its stock price, Shriver Food Systems, Incorporated, declared and issued a 100 percent…
A: A journal entry is a record of a business arrangement in the accounting system of a company. Journal…
Q: Heidi Software Corporation provides a variety of share-based compensation plans to its employees.…
A: Given, Total number of options = 9 Million Vesting period = 2 years Exercise price = $ 35 per share…
Q: 1. XYZ Company issues 3000 shares of stock for $40/share. The journal entry to record this…
A: Shares means an instrument which shows that the share holder is the owner of the company . Face…
Q: MN’s compensation package for its PEO consisted of a $600,000 salary plus $200,000 unfunded deferred…
A: The question has multiple sub-parts. As per the guidelines, only the first three sub-parts will be…
Q: What is the holding period yield for an investor who pays $1,145 for a bond with a $1,000 face value…
A: Holding period yield/return is the total return received from holding the bond investment over the…
Q: BRADY-LOMBARDI TROPHY COMPANY: Inventory Records for Year 20X1 Date Beg Inventory Purchases: Oct 01,…
A: Answer:- Weighted average cost method:- Weighted average method is one of the method of inventory…
Q: CAP Company is considering to replace Machine A with Machine B. Machine B will cost P150,000 and…
A: The question is related to Capital Budgeting. The Cash Inflow is calculated with help following…
Q: Finch Construction Company is a building contractor specializing in small commercial buildings. The…
A: Using job costing has various advantages: 1. It offers precise costs for each work, which may be…
Q: amarack Company purchased a plant from one of its suppliers. The $1,000,000 purchase price included…
A: Introduction:- Cost of fixed assets includes purchase price and any other costs incurred to bring…
Q: (a) What four (4) things do you need to know to figure out depreciation? (b) Name three (3) types of…
A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…
Q: ALL 3 and last part posted in writing ! Compute depreciation for each year (and total depreciation…
A: There are different methods to calculate depreciation and the two most prominent methods are…
Q: 2. You lab is going to start offering a new procedure. Here is the information you have about the…
A:
Q: Repurchase agreements typically have a maturity of A) 1 - 14 days B) 7 - 21 days C)…
A: A repurchase agreement is a contractual arrangement between two parties, where one party agrees to…
Q: Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$6.00 per…
A: Total overhead cost comprises of Fixed Overhead cost and Variable overhead Cost. Variable Overhead…
Q: Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets…
A: Supplies are classified as current assets in accounting until they are used, at which point they…
Q: A company's inventory records report the following Date Activities August 1 Beginning inventory…
A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…
Q: Tromp Limited is an investment company that purchases buildings and holds them for a number of…
A: As per IAS-40" Investment property"- A property is to be treated as an Investment property if it is…
Q: Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Chi…
A: As per the guidelines since you have posted a question with multiple sub-parts, we will solve first…
Q: In 2021 , Holyoak offers a coupon for $ 15 off qualifying purchases of its new line of products…
A: Coupons Issued in 2021 = 11,000 Cost of each coupon = $15
Q: 2. Acme Inc. has the following information available: Actual price paid for material Standard price…
A: Variances A variance is the difference between the actual cost incurred and the budgeted or…
Q: I dont understand how to calculate the Investment Income in the entries
A: Mergaronite acquired Hill on January 1, 2017, 100% of the shares of Hill Inc.. Hill Inc. has…
Q: Prepare a Production Cost Report under the FIFO method and answer the following:
A: Introduction: Cost of production: Production costs are the total expenses incurred by entities in…
Q: E6-6 On December 1, Discount Electronics has three DVD players left in stock. All are identical and…
A: The company calculates the cost of goods sold by adding the opening inventory and purchases and…
Q: Harpo Limited has traded for a number of years. financial statement of the company is as follows:…
A: The cash flow produced by a company's regular operations is known as operating cash flow. Using the…
Q: The Can Division of Sheffield Corp. manufactures and sells recyclable containers externally for…
A: Transfer price is synonymous with transfer cost. It refers to the price at which related parties…
Q: Accounts Payable account of FDNACCT Services had a beginning balance of P204,000. During the month,…
A: Ending accounts payable is the balance of accounts payable at the end of period after all the credit…
Q: Required: Determine the effect on the company's total net operating income of accepting the special…
A: Solution:- Calculation of the effect on the company's total net operating income of accepting the…
Q: During the current year, Polly Company purchased a second hand machine at a price of P5,000,000. A…
A: A capitalized cost is an expense that increases the cost base of a fixed asset on a company's…
Q: ABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and…
A: May 1, 20X1 to December 20X1 = 8 months Term of the note = 1 year Interest expense in 20X2 = 12 -8…
Q: Crane Corporation has fixed costs of $226800 and variable costs of $8.50 per unit. It has a target…
A: For answering this question, we are required to understand some basic things whch are, Contribution…
Q: John Smith mistakenly expensed the cost of a long-term tangible fixed asset. Specifically, he…
A: Many accounting errors can occur that will not be found on the trial balance so financial…
Q: Sharp Company manufactures a product for which the following standards have been set: Standard…
A: Material spending variance is the sum of Material price variance and Material quantity variance.…
Q: Which of the following statements is false? Select one: a. The separation of current debt from…
A: Long-term debt is a type of debt whose maturity date is more than 12 years. Long-term debt includes…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Bank reconciliation statement is used to determine the differences between the bank statement…
Q: The following information relates to a joint production process for three products, with a total…
A: The approach of allocating joint costs based on each product's proportional part of the market or…
Q: Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for…
A: Introduction:- Ratio analysis used identify the business performance of the company. It is used to…
Q: COMPARING INTEREST COST. You currently have a credit card that charges 18.99% interest. You receive…
A: Answer:- Interest cost meaning:- Interest cost is the overall sum of interest payments a borrower…
Q: Assume you can obtain an annual interest rate of 12% compounding monthly. You are going to invest…
A: The quantity of compounding periods significantly affects how compound interest is calculated. The…
Q: Alovise chairs (pty) Ltd manufactures chairs and presented you accountant the management with the…
A: (1) Closing stock = 30% of next months sales Closing stock for the month of April = 30 % of 2000 =…
Q: Determine your budget variance and what type it is. Provide a short explanation that can be given…
A: Rio Grande Medical Center has made expansion plans and in order to create the required space, are…
Q: How are capital expenditures made to improve the quality of a capital asset accounted for? Would the…
A: Capital expenditure funds are funds used by a company to acquire or upgrade physical assets such as…
Step by step
Solved in 2 steps
- 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.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.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.
- Anoka 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?Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?