2016 20Y5 Net income Preferred dividends Average number of common shares outstanding $4.243,200 $2,855.360 564,000 $64.000 128,000 shares 104,000 shares Determine the earnings per share for 20Y6 and 20YS. b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable of unfavorable trend?
2016 20Y5 Net income Preferred dividends Average number of common shares outstanding $4.243,200 $2,855.360 564,000 $64.000 128,000 shares 104,000 shares Determine the earnings per share for 20Y6 and 20YS. b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable of unfavorable trend?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:20Y6
20Y5
Net income
Preferred dividends
Average number of common shares outstanding
$4,243,200
$2,855,360
564.000
564.000
128,000 shares
104,000 shares
Determine the earnings per share for 20Y6 and 20Y5.
b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable of
unfavorable trend?
EX 13-1 Dividend per share
Internal Insights Inc., a developer of radiology equipment, has stock outstanding as
follows: 70,000 shares of cumulative preferred 2% stock, $60 par, and 100,000 shares of
$10 par common. During its first four years of operations, the following amounts were
distributed as dividends: first year, $49,000; second year, $132,000; third year, $146,000;
fourth year, $160,000. Compute the dividend per share on each class of stock for each of
the four years.
OBJ. 3
EX 13-2 Dividend per share
OBJ. 3
Lightfoot Inc., a software development firm, has stock outstanding as follows: 40,000
shares of cumulative preferred 1% stock, $125 par, and 100,000 shares of $150 par
common. During its first four years of operations, the following amounts were distributed
as dividends: first year, $36,000; second year, $58,000; third year, $75,000; fourth year,
$124,000. Compute the dividend per share on each class of stock for each of the four years.
EX 13-3 Entries for issuing par stock
On October 31, Pidgeon Stones Inc., a marble contractor, issued for cash 320,000 shares
of $5 par common stock at $12, and on November 19, it issued for cash 45,000 shares of
preferred stock, $60 par at $72.
a. Journalize the entries for October 31 and November 19.
OBJ. 3
b. What is the total amount invested (total paid-in capital) by all stockholders as of
November 19?
EX 13-4 Entries for issuing no-par stock
OBJ. 3
On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 1,000,000 shares
of no-par common stock (with a stated value of $0.25) at $1.20, and on August 3, it issued
for cash 10,000 shares of preferred stock, $15 par at $21.
a. Journalize the entries for February 12 and August 3, assuming that the common stock
is to be credited with the stated value.
. What is the total amount invested (total paid-in capital) by all stockholders as of August 3?
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