26.Armstrong Co has produced the following net profit figures for the years ending 31 December.Sm20X1 1.220X2 0.620X3 2.1On 1 January 20X2 the number of shares outstanding was 600,000. During 20X2 the company announced a rights issue with thefollowing details.Rights: 1 new share for each 4 outstandingExercise price: $7.00Last date to exercise rights: 1 May 20X2The market (fair) value of one share in Armstrong immediately prior to exercise on 1 May 20X2Required:Calculate the (a) EPS restated for rights issue for 20X1, (b) EPS for 20X2 and (c) EPS for 20X3.Show your calculations otherwise the answer will not be considered.= $10.00.

Step 1: Calculate the Bonus Fraction The bonus fraction adjusts for the rights issue to reflect the…

Answered: 26. Armstrong Co has produced the…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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BEPS - rights issue A company has 1,000,000 shares in issue at that start of the year. During the year, a rights issue of one new share for every four shares was made at a price of £5 per share. The pre-issue market price was £6.50 per share. The theoretical ex-rights price (TERP) is: Select one: O a. £5.00 b. £6.20 C. £5.30 O d. £6.00
At 1 Jul 20X4 a company’s capital and share premium account of a company were as follows:Ordinary share capital $75,000(300,000 shares of 25c each)Share premium account $200,000In the year ended 30 June 20X5 the following event took place: 1.On 1 January 20X5 the company made a rights issue of 1 share for every 5 held at $1.20 per share2.On 1 April 20X5 the company made a bonus issue of 1 share for every 3 in issue at that time, using the share premium account to do so. What are the correct balance on the company’s capital and share premium account at 30 June 20X5?Ordinary share capital Share premium accountA $120,000 $227,000B $120,000 $137,000C $460,000 $287,000D $480,000 $137,000
Assume the commission per trade is $20 plus $1.75 per contract. Stock Price (May 1) Price (Nov 1) IBM $185 $185 Manulife $26 $21 General Mills $6.25 $8.50 Barrick Gold $25 $30 If you purchase a 6 month PUT on 1,000 shares of General Mills on May 1 costing $0.70 per share, and exercisable at a strike price of $6.00... How much would you have gained or lost if you held the option to expiration?
Assume the company earns $1.62 per share. What was the sale volume? 52 Weeks Stock (Sym) Jaymen Co. Volume (100's) 51,615 Net Change - 0.50 HI LO DIV YLD % PE Close 49.94 40.25 0.58 46.90 Sale volume
mc attached
The YZA Corporation has 100,000 ordinary shares authorized, par value P10. As of the end of reporting period, 60,000 of the shares are outstanding. Required: Compute the earnings per share assuming the company has a profit of: A. P10,000 B. P70,000 C. P90,000 D. P150,000 E. P180,000
. Journal entries using the Cost and Equity Method of accounting for the for the following transtation : On 1/2/18 the Xylo Corp. purchased 8000 shares of ABC Co. Common Stock At $20 per share. ABC Co. has 40000 shares of Common Stock outstanding. On 10/31/18 Xylo Corp. received a $1.50 per share dividend from ABC Co. On 12/30/18 ABC Company announced earnings of for the year at $200000. Prepare the calculations and Journal Entries, in good form, if the Investment is classified as Available for sale Part A. The Cost Method. Part B The Equity Method of accounting is applicable.
Using the following information for the year ended 30 June, prepare the Retained Earnings Account for Kramer Ltd. Retained earnings as at 1 July $450,000 Transfer from Dividend Equalisation Reserve $200,000 Operating Profit (before income tax expenses $270,000) $900,000 Create a provision for dividend of 15 cents per share. There are 7,500,000 shares issue
Drange plc has share capital of 300,000 £1 shares at 1 March 20X7. These were issued at £1.50 per share. On February 20X8 Drange plc made a 2 for 3 bonus issue. Before accounting for this, the balance on retained earnings at 28 February 20X8 was £717,000. In its statement of financial position at 28 February 20X8 the balance on Drange plc's retained earnings will be £. .
1. ABC Co purchases 10,000 XYZ Inc., shares for P100 per share on April 9, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Requirement: Prepare Journal Entries on April 9 and April 30, 20x1. 2. ABC Co purchases 10,000 XYZ Inc. shares for P100 per share on April 27, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Prepare Journal Entries on April 9 and April 30, 20x1. Requirement: Prepare Journal Entries on April 27 and April 30, 20x1. 3. ABC Co holds 10,000 shares of XYZ Inc. as Investment in equity securities. On April 1, 20x1, ABC Co receives land with accost of P1,000,000 and fair value of P1,300,000 as property dividend. Requirement: Prepare Journal Entries on April1. 4.…
Virma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…
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.

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