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4/1 e form of a 2 6 520 529 8 85 93 (4) (4) (13) (13) 350 350 9 48 (4) 1,155 2,233 3,445 (40) (25) (69) (4) (4) (17) (17) 22.0 (22.0) 450 450

4/1 e form of a 2 6 520 529 8 85 93 (4) (4) (13) (13) 350 350 9 48 (4) 1,155 2,233 3,445 (40) (25) (69) (4) (4) (17) (17) 22.0 (22.0) 450 450

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 9 LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) Preferred Common Stock, $1 Additional Paid- Stock, $10 par $ 0 par $ 40 8 in Capital $ 550 520 Retained Earnings $ 1,900 Total Shareholders' Equity $ 2,490 529 85 93 (4) (4) (13) (13) 350 350 9 48 (4) 1,155 (40) 2,233 3,445 (25) (69) (4) (4) (17) (17) 22.0 (22.0) 450 450 9 66.0 1,093.0 2,637 3,805 6.60 3 90 31 (96.60) 34 (4) (4) (33) (33) 434 434 $ 9 $ 75.60 $ 1,214.0 $ 2,937.40 $ 4,236 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).
Transcribed Image Text:Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 9 LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) Preferred Common Stock, $1 Additional Paid- Stock, $10 par $ 0 par $ 40 8 in Capital $ 550 520 Retained Earnings $ 1,900 Total Shareholders' Equity $ 2,490 529 85 93 (4) (4) (13) (13) 350 350 9 48 (4) 1,155 (40) 2,233 3,445 (25) (69) (4) (4) (17) (17) 22.0 (22.0) 450 450 9 66.0 1,093.0 2,637 3,805 6.60 3 90 31 (96.60) 34 (4) (4) (33) (33) 434 434 $ 9 $ 75.60 $ 1,214.0 $ 2,937.40 $ 4,236 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).
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