On January 1, 2025, Novak Company issued 10-year, $2,150,000 face value, 6% bonds, at par. Each$1,000 bond is convertible into 16 shares of Novak common stock. Novak's net income in 2025 was$518,950, and its tax rate was 20%. The company had 97,000 shares of common stock outstandingthroughout 2025. None of the bonds were converted in 2025.a. Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)Diluted earnings per share$b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that$970,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferredshare is convertible into 5 shares of Novak common stock. (Round answer to 2 decimal places, e.g.2.55.)Diluted earnings per share $

To compute diluted earnings per share (EPS) for 2025, we'll use the treasury stock method for both…

Answered: a. Compute diluted earnings per share…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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1.
With the information provided answer the following questions. a) Calculate the income effect of the dividends on the preferred shares. b) Calculate the basic earnings per share (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).(Round answer to 2 decimal places) c) Calculate the after tax interest on bonds converted d) Calculate an incremental per share effect for the 9% bonds. Do this by calculating the incremental numerator effect, incremental denominator effect and the EPS. e) Calculate the proceeds from the assumed exercise of 100,000 options. f) Calculate the incremental shares outstanding upon the exercise of options. g) Rank the potentially dilutive securities from most dilutive to least dilutive. (9% bonds and Options)
What is the diluted earnings per share?(Present answer in 2 decimal places, example: x.xx)
Hh2.
3
U the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share. E14.6 (LO 1, 2) (Stock Issuances and Repurchase) Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2025, Lindsey Hunter took part in the following selected transactions. a. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000. b. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance. c. Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2021 at $40 per share. d. Retired the treasury shares purchased in part (c). Instructions Prepare the journal entries to record these…
5. The Preferred Shares account has a balance of $100,000. There are 500 convertible preferred shares, each convertible to 4 common shares. On a day that the preferred shares have an average cost of $200 and a market value of $230, one half of the preferred shares are converted to common shares. Common shares are trading at $60. Which statement is true? a. Retained Earnings will be debited by $2,500. b. The Common Shares account will be credited for $50,000. C. An income statement account, Loss on Conversion, will be debited by $2,500. d. The Common Shares account will be credited for $60,000.
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
A7 please help.......
A2 please help......
Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,300 shares) Common shares (outstanding, 33,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600. Case B: The preferred shares are cumulative; the total amount of dividends is $63,000. Case C: Same as case B, except the amount is $97,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 154,500 615,000 296,000 Case C: Total Per share Preferred Shares Common Shares

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