Anderson Steel Company began 2021 with 500,000 shares of common stock outstanding. On March 31, 2021, 160,000 new shareswere sold at a price of $70 per share. The market price has risen steadily since that time to a high of $75 per share at December 31.No other changes in shares occurred during 2021, and no securities are outstanding that can become common stock. However, thereare two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensationarrangements reached in 2020. The first agreement grants to the company president a right to 32,000 shares of stock each year theclosing market price is at least $73. The agreement begins in 2022 and expires in 2025. The second agreement grants to thecontroller a right to 37,000 shares of stock if she is still with the firm at the end of 2029. Net income for 2021 was $4,200,000.Required:Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2021. (Enter youranswers in thousands. Do not round intermediate calculations.)BasicDilutedNumerator1 Denominator11= Earnings per Share|||||==

Earnings per share refer to the proportion of profit to be earned by each shareholder of the…

Answered: Anderson Steel Company began 2021 with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2024. On April 1, 2024, the company issued 30,000 shares of common stock. The company had outstanding fully vested incentive stock options for 6,000 shares exercisable at $11 that had not been exercised by its executives. The average market price of common stock was $13. The company reported net income in the amount of $279,915 for 2024. What is the basic earnings per share (rounded)? Multiple Choice $4.67 $3.11 $292 $3.39
Mechforce, Incorporated had net income of $150,000 for the year ended December 31, 2022. At the beginning of the year, 17,000 shares of common stock were outstanding. On April 1, an additional 19,000 shares were issued. On October 1, the company purchased 4,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Mechforce paid the annual dividend on the 8,000 shares of 4.60%, $100 par value preferred stock that were outstanding the entire year. Required: Calculate basic earnings per share of common stock for the year ended December 31, 2022. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Earnings per share $ 0.74 x
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Copley Corporation is preparing their financial statements for the year ending February 28, 2022. Copley Corporation has two categories of stock: Preferred and Common. The preferred stock is structured such that the holders of the preferred stock may convert one share of preferred stocks into one share of common stock if the market price of the common stock is greater than $1,000. As of February 28, 2022, the market price of the common stock had never reached $1,000. In the preparation of the 2/28/22 Income Statement Copley’s staff accountant was calculating the Basic and Diluted EPS. While calculating the diluted EPS the staff accountant is unsure of whether to include the potential impact of the convertible preferred stock since the trigger conversion price had not been met as of 2/28/22. Accounting Issue: In the calculation for Diluted EPS should Copley Corporation include the impact of the convertible preferred stock since the trigger conversion price of $1,000 had not…
Waterway Industries, had 830,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021, an additional 40,000 shares of common stock were issued for cash. Waterway also had unexercised stock options to purchase 32,000 shares of common stock at $15per share outstanding at the beginning and end of 2021. The average market price of Waterway's common stock was $20 during 2021. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31,2021 Only typing answer Please explain step by step without table and graph
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In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% downpayment. What is the amount of the company's legal capital in 2021?
Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 500 shares of Carroll Company common stock for $76 per share. Dec. 21 Purchased 800 shares of Dynamo Company common stock for $34 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share. Required: 1. Prepare journal entries to record the preceding information. 2. What is the unrealized holding gain or loss, and where is it reported in the 2019 financial statements? 3. Show how the bank reports the equity securities on its December 31, 2019, balance sheet.
Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 400 shares of Carroll Company common stock for $75 per share. 21 Purchased 700 shares of Dynamo Company common stock for $30 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share. Question Journal entries to record the preceding information (pay attention to dates) would include: Credit to Cash of $51,000 Credit to Unrealized Holding Gains/Losses - Equity Investments of $3,700 Credit to Equity Investments of $30,000 Credit to Fair Value Adjustment - Equity Investments of $3,700
LaVine Corp. had 1,000,000 shares of common stock outstanding throughout 2021. On August 1, 2021, LaVine issued $12 million of ten year, 6% bonds. Beginning August 1, 2023, bondholders may exercise a conversion privilege to convert the bonds into 300,000 shares of LaVine common stock. During 2021, LaVine reported $8,000,000 of net income and paid $500,000 in preferred dividends. LaVine's marginal income tax rate is 20%. What is LaVine's 2021 diluted earnings per share? O $6.78 $6.96 $7.50 $6.73 $5.94 O $6.04
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Blue Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2018. What is the diluted earnings per share (rounded)?

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