On January 1, 2020, Sage Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each $1,000 bond isconvertible into 15 shares of Sage common stock. Sage's net income in 2020 was $403,200, and its tax rate was 20%. Thecompany had 96,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)Diluted earnings per share3.98(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $960,000 of 6%convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares ofSage common stock. (Round answer to 2 decimal places, e.g. $2.55.)Diluted earnings per share $3.82

Diluted earnings per share is a financial metric that represents a company's earnings per share,…

Answered: (a) Compute diluted earnings per share…

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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What is the diluted earnings per share?(Present answer in 2 decimal places, example: x.xx)
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6. Nichols Inc. has the following transactions impacting its equity accounts during 2020. The number of shares of $1 par value common stock authorized is 100, 000, 000 and the number of shares outstanding as of January 1, 2020 is 40,000,000. The company also has 10,000 shares of 5% preferred stock with $100 par value authorized and outstanding at the beginning of the year. The preferred stock may be converted into 10 shares of common stock and was originally issued for $110 per share. Please record the following transactions: Jan 1 - Nichols issues 20,000,000 shares of common stock for $11 per share. May 1 - Repurchases 400,000 shares of common stock for $10 per share. June 1 - Sold 80,000 shares of treasury stock for $12 per share. October 1 - Nichols issues a 50% stock dividend (issued and distributed same day) December 1 - Issued 20,000 shares for land. The market price of the common stock is $13 per share. Prepare the journal entries to record each of the transactions above. What…
3
9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: XX.XX) On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares-P1,500,000 Share premium in excess of par-P 862,500 . Reserve for Treasury shares - 725,000 • Treasury ordinary shares-435,000, Treasury preference shares-P 290,000 • Retained earnings, unrestricted-P 2,168,000 Net income for the year - 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included.
(b) Prepare the stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) Buffalo Company Balance Sheet (in millions of dollars) (Partial) Paid-in Capital: Paid-in Capital Common Stock- Additional Paid-in Capital subt Less Treasury Stock Total Stockholders' Equity eTextbook and Medial List of Accounts 1000000
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
Directions: Determine values for the missing items. Round answers to one decimal. 2018 2017 Net Income (in millions) ? ? Weighted Average Shares Outstanding (in millions) Basic Number Shares ? 59.2 Diluted Number of Shares 64.8 ? Earnings Per Share Basic 1.50 1.09 Diluted 1.43 1.02 Assume no preferred stock or restricted stock unit dividends .
Computing EPS: Convertible Preferred Stock Charter Company earned net income of $48,000 in 2020. The company had 10,000 shares of common stock outstanding during the year and 1,000 shares of noncumulative preferred stock, each convertible into 5 shares of common stock with $10 par value per share. The relevant tax rate is 25%. During the year, Charter Company declared and paid $5,000 in preferred dividends and no common stock dividends. a. Compute basic earnings per share. b. Compute diluted earnings per share. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Net Income Available to Weighted Avg. Common Shares Outstanding Per Common Stockholders Share Basic EPS 2$ $ Diluted EPS $
Thoughtful Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2024: (Click the icon to view the partial balance sheet.) Read the requirements. Requirement 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has outstanding. common stock preferred stock preferred stock and common stock preferred stock and treasury stock Requirements 2. 1. Identify the different classes of stock that Thoughtful Comfort Specialists has outstanding. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? 3. () Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. 4. No preferred dividends are in arrears. Journalize the declaration of a $800,000 dividend at June 30, 2024, and the payment of the dividend on July 20, 2024. Use separate Dividends Payable accounts for preferred and common…

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