The Alford Group had 310,000 shares of common st shares during the year. There are no potential comm 2021 Feb. 28 Purchased 21,000 shares of treasury st Oct. 31 Sold the treasury shares purchased on Nov. 30 Issued 84,000 new shares. Dec. 31 Net income for 2021 is $909,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock sp Dec. 31 Net income for 2022 is $909,000. Required: 1. Determine the 2021 EPS. (Do not round intermed 2. Determine the 2022 EPS. 3. At what amount will the 2021 EPS be presented in (For all requirements, Enter your answers in thous
Q: In October, Crane Company reports 19,300 actual direct labor hours, and it incurs $202,400 of…
A: Variances are the differences between the estimated values for the material, labor and overhead and…
Q: A building acquired at the beginning of the year at a cost of $97,200 has an estimated residual…
A: Depreciation is the accounting technique used to distribute out the expense of a long-term asset…
Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $106,000, allowance…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: A company began 2024 with 26,000 units of inventory on hand. The cost of each unit was $5.00. During…
A: Cost of goods sold is the amount of cost incurred by the entity on the units sold in the market. It…
Q: The following is the adjusted trial balance of Sierra Company. The Retained Earnings acce balance…
A: Lets understand the basics. Income statement is prepared in order to know the income, expenses and…
Q: Compute Candlewood's deductions for the first year of its operations for: a. Organizational…
A: Organizational expenses The tax implication of organization expenses is that the minimum threshold…
Q: On July 1, 2022, the first day of its 2023 fiscal year, the Town of Bear Creek issued at par…
A: Debt service refers to the total amount of money required by a business or individual to repay all…
Q: stock holders are not liable for a corporation's actions or debt true or false
A: Corporation is an legal entity which have own identity. The shock holders of corporation is known as…
Q: Questions 1-45 are based on the following information for Tournesol Inc. (Cash flow statement and…
A: Financial ratios are quantitative indicators that are used to assess the status, health, and…
Q: According to the professional standards of practice, Internal Auditors demonstrate due professional…
A: Actions that adhere to moral norms and conduct guidelines are referred to as ethical behavior.…
Q: The following are the estimated monthly sales and desired ending finished goods inventories for…
A: Total units to be Produced for the month = Budgeted Sales+ Desired Ending Inventory- Beginning…
Q: The following accounts appear in the ledger of Monroe Entertainment Co. All accounts have normal…
A: Trial balance is the summary of all general ledger account balances in business. Total of debits…
Q: If the owner's equity is $135,000 and total liabilities are $90,000, then total assets would be OA.…
A: The accounting equation is one of the important formulas in accounting. In other words, it proves…
Q: Data table Sales revenues Share of snake cost Processing expenses Allocated overhead Meats $ 33,000…
A: Incremental income is the additional revenue or profit that a company generates by undertaking a…
Q: Lelak Company was formed on January 1, year 2. Its machinery is being depreciated using the MACRS…
A: Answer:- Depreciation meaning:- An asset loses value over the time as a result of use, damage etc.…
Q: Petrin Corporation makes one product and it provided the following information to help prepare the…
A: The direct costs of producing the products that a business sells are referred to as its cost of…
Q: Boxwood Company sells blankets for $32 each. The following was taken from the inventory records…
A: LIFO is last in first out method of inventory valuation under which inventories which are purchased…
Q: On January 23, 15,000 shares of Aurora Company's common stock are acquired at a price of $25 per…
A: Answer:- Journal entry meaning:- A journal entry is basically the act of recording any transaction,…
Q: Territory and Product Profitability Analysis Pipeline Surfboards Inc. manufactures and sells two…
A: Contribution Margin per unit = (Selling Price per unit - Variable Cost per unit)…
Q: Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her…
A: A simplified retirement plan (SEP) assists individuals in saving for retirement by contributing to…
Q: A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million.…
A: Depletion is always applicable to natural resources such as coal, oil, gas, or minerals. It is an…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: The income statement can be prepared using various methods as absorption costing and variable…
Q: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…
A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…
Q: THIS SOCI IS WRONG PLEASE PREPARE THE RIGHT ONE
A: Given in the question: Income tax expense has been shown on the other general expenses which is as…
Q: A $70,800, 60-day, 9% note recorded on November 21 is not paid by the maker at maturity. The journal…
A: Notes Receivable - Notes Receivable is an instrument issued by the payer to the payee. It acts as a…
Q: Prepare the journal entries to record the above transactions. Assume the company uses the perpetual…
A: The method of the inventory is the perpetual inventory system and as per that the inventories are…
Q: Rayburn Corporation has a building that it bought during year 0 for $850,000. It sold the building…
A: Business organizations are required to charge the depreciation expense in the books of accounts so…
Q: Requirements 1. Complete the table, calculating all the requested information for the two companies.…
A: Leverage ratio :— It is calculated by dividing total debt by total equity. Debt :— It is…
Q: Prepare the statement of cash flows of Red, Incorporated, for the year ended December 31, 2024,…
A: A direct method is also used for the preparation of cash flow statement in which a simple cash in…
Q: Which of the following BEST (select one) describes why auditors must maintain independence? a) The…
A: Auditor independence means that the auditor should be free from any kind of obligation towards the…
Q: Q10 Q11 Q12 By how much the change in Accounts Payable has generated or (used) cash? A) B) C) D) E)…
A: Cash flows statement is one of the financial statement of business. It shows all cash inflows and…
Q: Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of…
A: Lets understand the basics. Cashflow shows the cash inflow and cash outflow during the period. If…
Q: Prepare a Cash-Predistribution Schedule, assuming $30,000 of liquidation expenses.
A: To prepare a cash-predistribution schedule, we need to calculate the total cash available for…
Q: The income from operations and the amount of invested assets in each division of Beck Industries are…
A: Return on investment = (Income from operation / Invested Asset)*100 To compute the return on…
Q: Alderman Corporation has found that 70% of its sales in any given month are credit sales, while the…
A: A cash collection budget is a budget which shows the total cash collection in a given period. The…
Q: Current Attempt in Progress Tamarisk Manufacturing has net sales of $160000, cost of goods sold of…
A: Gross Profit - Gross Profit is a Profit Earned by the company from the sales made. This is the…
Q: Current Attempt in Progress Blue Rides Inc. has a March 31, 2024, fiscal year end and a 35% income…
A: Income Statement - An income Statement is a financial statement that includes revenue earned and…
Q: Required information Problem 10-5A (Algo) Understand stockholders' equity and the statement of…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Gladys Bank and Trust has $440 million in consumer loans with an average interest rate of 8.05…
A: The bank's main operations include accepting deposits from customers and providing loans. The bank…
Q: On June 30, 2021, the market interest rate is 5%. Team Corporation issues $600,000 of 10%, 25-year…
A: Bonds are the securities which are issued by the entity for the purpose of raising funds from the…
Q: Mention all the deductibles total from given questions Payments 28,000 1,500 producing property.…
A: Allowable Deduction : These are those deduction which are eligible to set off from the business…
Q: Allard Manufacturing Company established the following standard price and cost data. Sales price…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: estion Completion Status: South River Chemicals Pty Ltd manufactures a product called Zybek. Direct…
A: Cost per equivalent units assuming FIFO Method :— It is calculated by dividing total cost added…
Q: Eddie Limited has the following non- current asset section in its Statement of Financial Position as…
A: Cash is constantly moving in and out of the business. The term cash flow refers to the net amount of…
Q: our client has made all of these transfers. Which of these transfers will be excluded from the…
A: Gift tax Means If the total value of money received by an individual during a financial year.
Q: Brockney Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: 2. Peloton has the following stock outstanding. ■ Common Stock-$50,000 ($1 par, 150,000 shares…
A: When dividend is distributed, it is first paid to arrears of cumulative preference share and then…
Q: Tamarisk Corporation is considering purchasing one of two new machines. Estimates for each machine…
A: NPV (Net Present Value) is the method of determining whether a particular proposal of investment is…
Q: Mallory would like to create an irrevocable trust for her children that will remove assets from her…
A: Mallory is interested in creating an irrevocable trust to transfer assets to her children and remove…
Please help me
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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.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.
- 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. 3,370,000Ponce 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.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.
- 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.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.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?
- 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?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.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000