![INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260180657/9781260180657_smallCoverImage.gif)
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 19.12BE
To determine
Earnings per share (EPS): The amount of earnings made available to each common share is referred to as earnings per share. Dilutive securities like convertible bonds, convertible
Use the following formula to determine EPS:
To determine: The EPS of Corporation M for the year
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Question 8
At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account
(stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No
dividends were paid during the first two years. During 2020 the company declared and paid a cash
dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
PROBLEM NO. 1
Watusi Inc. began operations in January 2021 and reported the following results for each of its 3
years of operations.
2021
P260,000 net loss
P40,000 net loss
P700,000 net income
2022
2023
At December 31, 2023, Watusi Inc. share capital accounts were as follows.
Share Capital-Preference, 6% cumulative, par value P100;
authorized, issued, and outstanding 5,000 shares
Share Capital-Ordinary, par value P1.00; authorized 1,000,000
shares; issued and outstanding 750,000 shares
P500,000
750,000
Watusi Inc. has never paid a cash or share dividend. There has been no change in the share
capital accounts since Watusi began operations. The country law permits dividends only from
retained earnings.
Instructions
a. Compute the book value of the ordinary shares at December 31, 2023.
b. Compute the book value of the ordinary shares at December 31, 2023, assuming that the
preference shares have a liquidating value of P106 per share.
stion 51
At December 31, 2020, BFAR Corp. had 20,000 treasury shares that had been re-acquired in 2020 at 14 per share. These shares have
a par value of P8 per share. In May 2021, the company re-issued 6,000 of these treasury shares at P10 per share. On December 31,
2021, how much should be the amount of appropriation of accumulated profits from the above transactions, under the cost method?
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
Ch. 19 - The potentially dilutive effect of convertible...Ch. 19 - How is the potentially dilutive effect of...Ch. 19 - Prob. 19.13QCh. 19 - If stock options and restricted stock are...Ch. 19 - Wiseman Electronics has an agreement with certain...Ch. 19 - Prob. 19.16QCh. 19 - When the income statement includes discontinued...Ch. 19 - Prob. 19.18QCh. 19 - Prob. 19.19QCh. 19 - (Based on Appendix B) LTV Corporation grants SARs...Ch. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Stock options LO192 Under its executive stock...Ch. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Prob. 19.7BECh. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Performance-based options LO192 Refer to the...Ch. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - EPS; nonconvertible preferred shares LO197 At...Ch. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - EPS; shares issued; stock dividend LO195, LO196...Ch. 19 - Prob. 19.13ECh. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; net loss; nonconvertible preferred stock;...Ch. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - Prob. 19.17ECh. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; shares issued; stock options LO196 through...Ch. 19 - EPS; convertible preferred stock; convertible...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Prob. 19.24ECh. 19 - Prob. 19.25ECh. 19 - EPS; concepts; terminology LO195 through LO1913...Ch. 19 - FASB codification research LO192 The FASB...Ch. 19 - Prob. 19.28ECh. 19 - Prob. 19.29ECh. 19 - Prob. 19.30ECh. 19 - Restricted stock units; cash settlement Appendix...Ch. 19 - Stock options; forfeiture; exercise LO192 On...Ch. 19 - Stock options; graded vesting LO192 January 1,...Ch. 19 - Stock options; graded vesting; measurement using a...Ch. 19 - Stock options; graded vesting; IFRS LO192, LO1914...Ch. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - EPS from statement of retained earnings LO194...Ch. 19 - EPS from statement of shareholders equity LO194...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; convertible preferred stock; convertible...Ch. 19 - EPS; antidilution LO194 through LO1910, LO1913...Ch. 19 - EPS; convertible bonds; treasury shares LO194...Ch. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - EPS; options; restricted stock; additional...Ch. 19 - Prob. 19.1BYPCh. 19 - Communication Case 192 Stock options; basic...Ch. 19 - Prob. 19.3BYPCh. 19 - Real World Case 195 Share-based plans; Walmart ...Ch. 19 - Prob. 19.6BYPCh. 19 - Prob. 19.7BYPCh. 19 - Analysis Case 198 EPS concepts LO194 through...Ch. 19 - Prob. 19.9BYPCh. 19 - Prob. 19.10BYPCh. 19 - Communication Case 1911 Dilution LO199 I thought...Ch. 19 - Real World Case 1912 Reporting EPS; discontinued...Ch. 19 - Analysis Case 1913 Analyzing financial statements;...Ch. 19 - Analysis Case 1915 Kelloggs EPS; PE ratio;...Ch. 19 - Prob. 19.16BYPCh. 19 - Prob. 1CCTCCh. 19 - Air FranceKLM Case IFRS LO199 Air FranceKLM (AF),...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Problem 3 Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its December 31, 2020 statement of financial position. The following transactions happened during 2021: * On August 1, Party Company issued an additional 5,000 ordinary shares at P25 per share. * The company paid dividends totaling P80,000. * Net income during the year was P110,000. * Reacquired treasury shares of 2,000 at P30; subsequently, reissued 1,000 for P39. * No other changes occurred in the shareholders' equity for the year. What is the total equity that must be reported in the Statement of Changes in Equity for the year ended December 31, 2021?arrow_forwardLO 11-2, 11-5 E11-17 Determining the Effect of a Stock Repurchase on EPS and ROE Swimtech Pools Inc. (SPI) reported the following in its financial statements for the quarter ended March 31, 2021. Common Stock, $1 par, 50,000 shares issued and outstanding Additional Paid-In Capital Retained Earnings Total Stockholders' Equity December 31, 2020 $ 50,000 30,000 20,000 $100,000 March 31, 2021 $ 50,000 30,000 20,000 $100,000 During the quarter ended March 31, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling $5,000. Required: 1. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended March 31. 2. Assume SPI repurchases 10,000 of its common stock at a price of $2 per share on April 1, 2021. Also assume that during the quarter ended June 30, 2021, SPI reported Net Income of $5,000 and declared and paid cash dividends totaling $5,000. Calculate earnings per share (EPS) and return on equity (ROE) for the quarter ended June 30, 2021. 3.…arrow_forwardProblem 1 Burlington Corp. has a single class of shares. At its year end December 31, 2020, the company had 5,000,000 ordinary shares issued and outstanding. On the stock exchange, these shares were trading at around $7. In the company's accounts, these shares had a value of $50,000,000. The equity accounts also show $650,000 of contributed surplus from previous repurchases of shares as well as $30.000,000 of Retained Earnings. On January 15, 2021, Burlington repurchased and cancelled 250,000 shares at a cost of $7 per share. On August 20, 2021 the company repurchased and cancelled a further 475,000 shares at a cost of $14 per share. Required: Record the journal entries for the two share transactions in 2021.arrow_forward
- Question 2 Julien Company had $800,000 net income in 2021. On 1 January 2021, there were 400,000 ordinary shares outstanding. On I April, 10,000 shares were issued and on I May, the company issued 5% bonus issue on ordinary shares. 30,000 treasury shares were repurchased from the open market at $35 on 1 September. On 1 March 2021, the company issued 200,000 9%, noncumulative and nonconvertible preference shares (at $1 par value). Julien issued S1,000,000 of 8% convertible bonds at face value during 2020. Each $1,000 bond is convertible into 50 ordinary shares. Top executives were granted 100,000 options to buy ordinary shares at S30 if the net income is over $300,000. The beginning and ending market price of the ordinary shares was $46 and $54 respectively during the year 2021 At the financial year-end, dividends on preference shares are declared and paid. In addition, the company declared and paid $5 cash dividends to all ordinary shareholders. Assume the tax rate for 2021 is 40%…arrow_forwardP 7-19 (similar to) Question Help CX Enterprises has the following expected dividends: $1.03 in one year, $1.23 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 4.3% per year forever (so that year 4's dividend will be 4.3% more than $1.32 and so on). If CX's equity cost of capital is 12.2%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.) Fnter your answer in the answer box and then click Check Answer.arrow_forward5. The XYZ stock traded on the first day of this year at $ 1,500 / share and closed today at $ 1.65/ share. It reported profits of $ 150 million, of which it distributed $ 50 million to its shareholders. His net worth is known to be $ 450 million. If the company has 5 million shares outstanding, Calculate: • Market capitalization • Calculate earnings per share (EPS). • Calculate the appreciation of the YTD share • Calculate the r/n share value in the market vs the equity value QTOBINarrow_forward
- 27. Retained Earnings Titanic Corporation’s net income for the year ended December 31, 2022, is $380,000. On June 30, 2022, a $0.75 per-share cash dividend was declared for all common shareholders. Outstanding at the time were 38,000 common shares. The market price of Titanic’s shares at year-end (12/31/22) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2021. Assume that on July 31, 2022, Titanic discovered that 2021 depreciation was overstated by $75,000. Required: Prepare Titanic's retained earnings statement for the year ended December 31, 2022, assuming the 2021 tax rate was 30%.arrow_forward28. Retained Earnings Titanic Corporation’s net income for the year ended December 31, 2022, is $380,000. On June 30, 2022, a $0.75 per-share cash dividend was declared for all common shareholders. Outstanding at the time were 38,000 common shares. The market price of Titanic’s shares at year-end (12/31/22) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2021. Required: Calculate the ending balance (12/31/22) of retained earnings.arrow_forwardE11-11 Analyzing Stock Dividends LO11-6 At the beginning of the year, the shareholders' equity section of the statement of financial position of R & B Corporation reflected the following Common shares (no par value, authorized 65,000 shares, outstanding 32,500 shares) Contributed surplus Retained earnings Accumulated other comprehensive Income On February 1, the board of directors declared a 14 percent stock dividend to be issued on April 30 The market value per share was $20 on the declaration date. Required: 1. For comparative purposes, prepare the shareholders equity section of the statement of financial position (a) before the stock dividend and (b) after the stock dividend Contributed capital Outstanding 32.500 shares Outstanding 37,050 shares $390,000 14,500 177,500 30,500 Common shares Retained earnings Accumulated other comprehensive income Tatal shareholders' equity Shareholders' Equity Before Stock Dividend 390,000 390,000 After Stock Dividendarrow_forward
- Problem 3 National Supply's shareholders' equity included the following accounts at December 31, 2022: Ordinary share capital, P1 par Share premium-ordinary Retained earnings P 6,000,000 30,000,000 20,000,000 Each share was originally issued at an average price of P6 per share. National Supply reacquired its ordinary shares in two separate transactions and later sold shares. February 15 February 17 Reacquired 300,000 shares at P8 per share Reacquired 300,000 shares at P5.50 per share November 9 Sold 200,000 shares at P7 per share (assume FIFO). Prepare the entries for each of the transactions under each of two separate assumptions: 1. The shares are retired. 2. The shares are accounted for as treasury shares,arrow_forwardQ7 You own shares of a company that reported after-tax earnings of $34 million and has issued 20 million shares of stock. The company's stock price is $23.97 per share. Calculate the company's earnings per share.arrow_forwardChapter 14 Homework The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Comparative Retained Earnings StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained Earnings, Jan. 1 3,704,000 3,264,000 Net Income 600,000 550,000 Dividends: On Preferred Stock (10,000) (10,000) On Common Stock (100,000) (100,000) Increase in Retained Earnings 490,000 440,000 Retained Earnings, Dec. 31 4,194,000 3,704,000 Comparative Income StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales 10,850,000 10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross Profit 4,850,000 4,550,000 Selling Expenses (2,170,000) (2,000,000) Administrative Expenses (1,627,500) (1,500,000) Total Operating Expenses (3,797,500) (3,500,000) Operating…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education