There were no changes during Year 11 in the number of common shares, preferred shares, or convertible bonds outstanding
Q: The firm with the largest ratio of fixed costs to total costs automatically gets the greatest…
A: Lets understand the basics. Fixed cost is a cost which is fixed over a period of time. It includes…
Q: depreciation is taken in the year of acquisition. • No depreciation is taken in the year of…
A: Depreciation under straight line method is: = (Original cost - Residual value) ÷ Useful life
Q: What is preferred stock and common stock?
A: The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the…
Q: “IFAC defines the public interest as the net benefits derived for, and procedural rigor employed on…
A: Introduction: International Federation of Accountant (IFAC): It is an international association for…
Q: A company insued 4%, 15year bonds with a par valut of 5300 000 that pay interest annually Thie…
A: Interest on bonds is payable on face value. And Interest rate is the coupon rate.
Q: Discuss the factors that accountants should consider when setting up company accounting policy…
A: Accounting Policy- Accounting policies are the specific principles, foundations, conventions, rules,…
Q: How much is the net cash flow from financing? O (P 285,000) O (P510,000) O (P210,000) O (P445,000)
A: Cash flow from financing activities include the cash paid or received from the financing activities…
Q: ABC Corporation granted by the government to operate a franchise with their respective receipts for…
A: Franchise grantees: Gas and water utilities Radio and television broadcasting companies whose…
Q: Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar…
A: Given: - Particulars Amount ($) Book value 37,500,000 Production during 2020: Oil 19,000,000…
Q: 62. Statement of Financial Position 2021 2022 2023 Assets Current Assets Cash and…
A: The domestic corporation tax in the Philippines is 25%. Although if the total assets are less than…
Q: The adiusted trial balance data given below is from Cameron White Company's worksheet for the year…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Question 5 of 10 Khalid invested $9500 in a savings account with a yearly interest rate of 3% for 8…
A: Lets understand the basics. Simple interest is a interest earned over a single amount of investment.…
Q: The following information is available from the current period financial statements: Net income…
A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…
Q: OBLEM 5. On January 2, 2019, Born for you Inc. acquired copy rights to the original recording of a…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: inventory that should appear in the December 31, 2013 consolidated balance sheet should amount to:
A: IAS 27 defines consolidated financial statements as ‘the financial statements of a group in which…
Q: On January 1, 2021, Robin Cormpany received a grant of P1,500,000 from the government to subsidize…
A: Government Grant: Instead than acting as an incentive to carry out specified expenditures, a…
Q: The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and…
A: Gain is booked when money is received on the sale of the asset. leasing back can be assumed to be…
Q: Sammie reported the following for the taxable year 2022. Vatable ending inventory for March is…
A: In Philippines generate Vat tax rate is 12% on goods and services provided in the domestic territory…
Q: 54. Statement of Financial Position 2021 2022 2023 Assets Current Assets Cash and…
A: The net income of the company means the income that is calculated after deducting all the expenses.…
Q: restaurants. It has two service departments, computer services (S1) and administration and…
A: Under Direct Method, service department costs are allocated to production departments (but not to…
Q: $600 per year for 10 years at 12%. $ $300 per year for 5 years at 6%. $ $600 per year for…
A: Solution Concept Ordinary annuity is the annuity which is received at the end of the period Annuity…
Q: .On January 1, 2021, Risa signed an agreement to operate as a franchisee of Teddy Company for an…
A: Acquisition cost of franchise means the purchase cost of the franchise.
Q: Cleone has a taxable income of P270,000 for the year 2019. Opted to use the graduated tax table.…
A: The tax due is also referred to as the tax payable on the taxable income. The tax liability depends…
Q: Explain the accounting for the issuance of: a. Par value share b. No-par value share
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Answer the following questions correctly. 1. What is the treatment of a delinquent subscription?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Villanueva Company has two producing and two service departments labeled P1, P2, S1 and S2,…
A: Direct Method: Under direct method, service department costs are allocated to production departments…
Q: View Policies Current Attempt in Progress During 2017, Teal Furniture Company purchases a carload of…
A: Gross profit is calculated by deducting the cost of goods sold from sales. It is a profit before…
Q: Loren Company uses many kinds of machines in operations. The entity acquires some machines from…
A: Expenditure incurred by the organisation may be capital expenditure or revenue expenditure. It…
Q: Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same…
A: sale and lease back is a simple financial transaction which allows a person to leave the Asset to…
Q: Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as…
A: A. Collection period is 60 days. Half of the sales of each month are credit Thus credit sales of…
Q: Daniel Manufacturing Company uses the FIFO costing method to account for their inventories. The…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: he lessor will recognized the same gross profit whether the residual value is guaranteed by the…
A: given statement 1 is about direct finance lease . it is correct. statement 2 about indirect costs…
Q: 9 Explain how the effectiveness of general control affects the auditor's test of automated…
A:
Q: an economic life of 5 years. Sales for 2021 amounted to P3 its economic life are expected to be…
A: Solution Calculation of software carrying value on 31st Dec, 2021 Software value on 1st Jan, 2021…
Q: An entity is preparing its financial statements for the first time in accordance with PFRS for SMEs…
A: Financial statements are the reports presenting the financial position and profitability of an…
Q: Happy Inc. provided the following information: Beginning balance of Accounts receivable P5,000,000…
A: The accrual basis accounting records the revenue and expenses of the current period when they are…
Q: Statement 1: The lessor will recognized the same gross profit whether the residual value is…
A: Lease Accounting In the lease account which are involved both the parties like lessor and the lessee…
Q: Explain why partnership is a good form of business in your dream business and how are you going to…
A: partnership ,agreement between two or more person to share their knowledge and skills and profit and…
Q: Which of the following is a series of constant cash flows that occur at the end of each period for…
A: Cash inflows in the business means when transactions related to cash are considered. It can be…
Q: A company charges a customer $50 at the end of each month, and its cost per customer is $10 per…
A: Solution Concept Payback period is the period in which the investment is recovered After the payback…
Q: February 1, 2019 for P5,486,000 to be held as financial assets on February 1, 2023. The bonds are…
A: Bond amortization table: Date Cash received/Int. receivable @12% Interest income @ 15%…
Q: An engineering study performed in 2021 indicated that on January 1, 2021, 7,500,000 tons of…
A: Depletion refers to the reducing in the value of natural resources of the earth from extraction of…
Q: 3. RJ Coley visited Malcolm Variety Store to purchase the following items: These prices are…
A: Introduction General Consumption Tax (GCT) is tax applicable on purchase and sale of goods and…
Q: Explain with examples, the 4 types of expropriatio for minority shareholders, namely:
A: Minority shareholders refer to those shareholders who own less than 50% of the total shares of a…
Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…
A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…
Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…
A: Given information P=P 10 000 t = 2 years and 6 months m = 12 Therefore, n =tm =12 * 2.5…
Q: Prepare the journal entry on the books of the partnership to record the withdrawal of Stine
A: Journal Entries a. Stin capital a/c Dr. 60000 Gregg capital a/c Dr. 8000 Baker capital a/c…
Q: Dividend Distribution Assignment – Brescia Corporation Brescia Corporation's shareholders' equity…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Calculate the Direct expenses and factory cost from the following information: Direct Labor RO…
A: Solution Concept While preparing cost sheet statement prime cost and factory cost shall be shown…
Q: Celgene Corporation purchased all of Receptos, Inc's outstanding stock for $7.6 billion in cash on…
A: Small business units are united to form a new combined unit, which is referred to as a business…
The information below pertains to TV Johnny Company for Year 11:
Net income for the year $1,200,000
7% convertible bonds issued at par ($1,000 bond);
each bond convertible into 30 shares of common stock 2,000,000
6% convertible, cumulative preferred stock, $100 par value;
each share convertible into 3 shares of common stock 4,000,000
Common stock, $10 par value 6,000,000
Income tax rate for Year 11 20%
Average market price of common stock during Year 11 $25 per share
Market price of common stock on December 31, Year 11 $30 per share
There were no changes during Year 11 in the number of common
Instructions:
1. Compute Basic EPS for Year 11.
2. Compute Diluted EPS for Year 11.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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 37 5. The bonds are classified as a held-to-maturity 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 issue d 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 (I). 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 h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [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 in come statement for the year ended December 31, 201 6, 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, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.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.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
- On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Below is select information from two, independent companies. Additional information includes: On January 1, Company A issued a 5-year $1,500,000 bond with at 6% stated rate. Interest is paid semiannually and the bond was sold at 105.5055 to yield a market rate of 4.75%. On January 1, Company B sold $1,500,000 of common stock and paid dividends of $75,000. A. Prepare an income statement for each company (ignore taxes) B. Explain why the net income amounts are different, paying particular attention to the operational performance and financing performance of each company. (Hint: it may be helpful for you to create an amortization table).
- 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.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.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?
