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INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 19, Problem 19.20E
EPS; shares issued; stock options
• LO19–6 through LO19–9
Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2018.
Additional Information:
Common shares outstanding at Jan. 1, 2018 | 80,000 |
Incentive stock options (vested in 2017) outstanding throughout 2018 | 24,000 |
(Each option is exercisable for one common share at an exercise price of $37.50.) | |
During the year, the market price of Stanley’s common stock averaged $45 per share. | |
On Aug. 30, Stanley sold 15,000 common shares. | |
Stanley’s only debt consisted of $50,000 of 10% short term bank notes. | |
The company’s income tax rate is 40%. |
Required:
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Students have asked these similar questions
Problem 1. The stockholders' equity section of Kookie Co. revealed the following
information on December 31, 2022.
Preference stock, P50 par
Share premium – preference
Ordinary stock, P15 par
Share premium – ordinary
Subscribed ordinary stock
Retained earnings
2,300,000
805,000
5,250,000
2,750,000
150,000
1,900,000
400,000
Subscriptions receivable – ordinary (collectible next month)
Required: Answer the following questions with supporting computations:
1. How much is the legal capital?
2. How much is the total paid in capital?
3. What is the amount of the stockholders' equity on 12/31/2022?
4. How many preference shares were issued?
5. How many ordinary shares were subscribed?
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Current Attempt in Progress
At December 31, 2020, Sheridan Company has $580,000 of $100 par value, 5%, cumulative preferred stock outstanding and
$2,160,000 of $10 par value common stock issued. Sheridan's net income for the year is $482,600.
Compute earnings per share of common stock for 2020 under the following independent situations. (Round answers to 2 decimal places,
e.g. 1.50.)
(a)
The dividend to preferred stockholders was declared, and there has been no change in the number of shares of common
stock outstanding during the year.
(b)
The dividend to preferred stockholders was not declared, and 10,000 shares of common treasury stock were held
throughout the year. The preferred stock is cumulative.
(a)
Earnings per share of common stock
(b)
Earnings per share of common stock
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Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6]
For the year ended December 31, 2021, Norstar Industries reported net income of $985,000. At January 1, 2021, the company had
1,150,000 common shares outstanding. The following changes in the number of shares occurred during 2021:
Apr. 30 Sold 105,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June
1 Issued 120,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS"
answer to 2 decimal places. Do not round intermediate calculations.)
Numerator
Denominator
Earnings per Share
%3D
%3D
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...
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