a. 300 shares of convertible 6% bonds. Each of the $1,000 bondsis convertible into 50 shares of common stock at the presentdate and for the next 10 years.$300,000b. $10 par common stock, 200,000 shares issued and outstandingduring the entire year.$2,00p,000c. Stock warrants outstanding to buy 16,000 shares of common stockat $20 per share.d. 200,000 shares of 6% nonconvertible preferred stock, $5 par value. $1,000,0003. Other information:a. Bonds converted during the year:Noneb. Income tax rate: 30%c. Convertible debt was outstanding the entire yeard. Average market price per share of common stock during the year: $32e. Warrants were outstanding the entire yearf.Warrants exercised during the year: NoneRequired:1. Calculate the basin EPS2. Calculate the diluted EPS. Round your answers to the nearest cents, The following information was taken from the books and records of Luxemburg, Inc.:1. Net income$ 480,0002. Capital structure:a. 300 shares of convertible 6% bonds. Each of the $1,000 bondsis convertible into 50 shares of common stock at the presentdate and for the next 10 years.$300,000b. $10 par common stock, 200,000 shares issued and outstandingduring the entire year.$2,000,000c. Stock warrants outstanding to buy 16,000 shares of common stockat $20 per share.d. 200,000 shares of 6% nonconvertible preferred stock, $5 par value. $1,000,0003. Other information:a. Bonds converted during the year:Noneb. Income tax rate: 30%c. Convertible debt was outstanding the entire yeard. Average market price per share of common stock during the year: $32e. Warrants were outstanding the entire yearNonef. Warrants exercised during the year:Reauired:

Earnings per Share (EPS): EPS is a common-size measure of a company's earnings performance. It is…

a. 300 shares of convertible 6% bonds. Each of the $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. $300,000 b. $10 par common stock, 200,000 shares issued and outstanding during the entire year. $2,00p,000 c. Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share. d. 200,000 shares of 6% nonconvertible preferred stock, $5 par value. $1,000,000 3. Other information: a. Bonds converted during the year: None b. Income tax rate: 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year : $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year: None Required: 1. Calculate the basin EPS 2. Calculate the diluted EPS. Round your answers to the nearest cents,

a. 300 shares of convertible 6% bonds. Each of the $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. $300,000 b. $10 par common stock, 200,000 shares issued and outstanding during the entire year. $2,00p,000 c. Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share. d. 200,000 shares of 6% nonconvertible preferred stock, $5 par value. $1,000,000 3. Other information: a. Bonds converted during the year: None b. Income tax rate: 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year : $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year: None Required: 1. Calculate the basin EPS 2. Calculate the diluted EPS. Round your answers to the nearest cents,

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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MC Qu. 11-74 Anthem Inc. issues... Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the following ways? Multiple Choice Debit Common Stock for $22,000, debit Additional Paid-in Capital for $31,978,000 and credit Cash for $32.00 million. Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million. Debit Common Stock for $22,000, debit Additional Paid-in Capital for $17,978,000 and credit Cash for $18.00 million. Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for $18.00 million and credit Cash for $18.00 million.
Question 6 On January 1, 20B, Lovell company had 600,000 ordinary shares outstanding. On April 1, 20B, an additional 180,000 ordinary shares were issued for cash. Lovell also had P5,000,000 of 8% convertible bonds outstanding during 20B, which are convertible into 150,000 ordinary shares. The bonds are dilutive in the 20B earnings per share computation. No bonds were issued or converted into ordinary shares during 20B. What is the number of shares that should be used in computing diluted earnings per share? 735,000 780,000 885,000 930,000
10
QUESTION 4 Emma Consulting had previously purchased 3,466 shares of treasury stock for $7 per share. Emma then sold 1,225 shares of the treasury stock for $13 per share. The credit to treasury stock to record the sale would be $
Jones Corporation’s capital structure follows. December 31 2020 Outstanding shares of stock Common stock, outstanding shares 110,000 Convertible preferred stock, outstanding shares 10,000 8% Convertible bonds $1,000,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock. The 8% bonds are convertible into 30,000 shares of common stock. Net income for 2020 is $850,000. Assume that the income tax rate is 25%. a) Compute basic EPS for 2020. b) Compute diluted EPS for 2020. c) Prepare the bottom of the company’s income statement in proper form, beginning with the net income.
true or false.d. Issuing 1,000 shares of $5 par-value stock at $12 increases contributed capital by $12,000.
D. February 2 Issue 1.5 million shares of common stock for $15 per share. February 4 Issue 400,000 shares of preferred stock for $24 per share. June 15 Purchase 150,000 shares of its own common stock for $10 per share. August 15 Resell 112,500 shares of treasury stock for $25 per share. November 1 Declare a cash dividend on its common stock of $1.50 per share and a $400,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list ces Journal entry worksheet 1 Record the issuance of 1.50 million shares of common stock for $15 per share. Note: Enter debits before credits. Date General Journal Debit Credit February 02, 2021
2 Issue 120,000 shares of common stock for $50 per share. January February 14 Issue 40,000 shares of preferred stock for $13 per share. May May December 1 Declare a cash dividend on its common stock of $0.25 per share and a $16,000 (4% of par value) cash 8 Purchase 12,000 shares of its own common stock for $40 per share. 31 Resell 6,000 shares of treasury stock for $45 per share. dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $470,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Total Paid-in Capital Total Stockholders' Equity
8
Treasury StockPomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Pomona sold 1,500 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.c. Assume that Pomona sold the remaining 500 shares of treasury stock at $20 per share. Prepare the journal entry to record the sale of this treasury stock. General Journal Ref. Description Debit Credit a. Answer Answer Answer Common stock Answer Answer Answer Answer Answer Issued shares of common stock. Answer Answer Answer 10% Preferred stock Answer Answer Answer Answer Answer Issued shares of preferred stock. Answer Answer…

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