Anderson Steel Company began 2024 with 440,000 shares of common stock outstanding.• On March 31, 2024, 200,000 new shares were sold at a price of $40 per share.• The market price has risen steadily since that time to a high of $45 per share at December 31.• No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock.However, there are two agreements with officers of the company for future issuance of common stock.• Both agreements relate to compensation arrangements reached in 2023.• The first agreement grants to the company president a right to 20,000 shares of stock each year the closing market price isat least $43.• The agreement begins in 2025 and expires in 2028.• The second agreement grants to the controller a right to 25,000 shares of stock if she is still with the firm at the end of2032.•. Net income for 2024 was $3,000,000.Required:Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024.Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).BasicDilutedNumerator ++Denominator ===Earnings per Share

The basic earnings per share and diluted earnings per share are both different. The earning per…

Answered: Anderson Steel Company began 2024 with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,400,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 220,000 of them issued at $16 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $22,620,000 and other comprehensive loss of $5,150,000. On October 1, 2019, the balance in Retained Earnings was $18,600,000 and the balance in Accumulated Other Comprehensive Income was $910,000. The preferred shares pay an annual dividend of $1.10. During the fiscal year 2020, the following transactions affected shareholders’ equity: 1. On November 1, 2019, 400,000 new common shares were issued at $31 per share. 2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when…
Anderson Steel Company began 2018 with 600,000 shares of common stock outstanding. On March 31, 2018,100,000 new shares were sold at a price of $45 per share. The market price has risen steadily since that time toa high of $50 per share at December 31. No other changes in shares occurred during 2018, and no securities areoutstanding that can become common stock. However, there are two agreements with officers of the company forfuture issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. Thefirst agreement grants to the company president a right to 10,000 shares of stock each year the closing market priceis at least $48. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller aright to 15,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $2,000,000.Required:Compute Anderson Steel Company’s basic and diluted EPS for the year ended December 31, 2018.
Crane Inc. a publicly traded company, had 195,000 common shares outstanding on December 31, 2022. During 2023, the company issued 6,000 shares on May 1 and retired 18,000 shares on October 31. For 2023, the company reported net income of $186,200 after a loss from discontinued operations of $35,280 (net of tax). Assume that Crane issued a 3-for-1 stock split on January 31, 2024, and that the company's financial statements for the year ended December 31, 2023, were issued on February 15, 2024. Calculate earnings per share for 2023 as it should be reported to shareholders.
Please show the solution in good accounting form. 8. How much is the total shareholders' equity at year-end?
Anderson Steel Company began 2021 with 500,000 shares of common stock outstanding. On March 31, 2021, 160,000 new shares were 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, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2020. The first agreement grants to the company president a right to 32,000 shares of stock each year the closing market price is at least $73. The agreement begins in 2022 and expires in 2025. The second agreement grants to the controller 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…
Pharoah Inc., which has a December 31 year end, had the following shareholders' equity account balances as at December 31, 2024: Common shares (1,350,000 shares issued and outstanding) $27,000,000 Retained earnings $5,456,000 On February 18, 2025, Pharoah Inc. repurchased and cancelled 302,000 common shares, paying $22.20 per share. Provide the journal entry to record the share repurchase transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer
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…
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 50 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018. Prepare the journal entry. Please dont provide soluton image based solutions thank you
Jakarta Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2021. The following information is available for the company for 2020 and 2021. 2021 2020 Net income $120,000 $100,000 Average stockholders' equity 1,000,000 800,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 360,000 480,000 Instructions(1) Compute the return on common stockholders' equity for both years.(2) Explain how it is possible that net income increased, but the return on common stockholders' equity decreased.(3) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company's solvency.
Sheffield Company issues 3,700 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2025. The stock has a fair value of $129,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Yaping stays with the company for 4 years. The par value of the stock is $5. At December 31, 2026, the fair value of the stock is $131,000. (a) Prepare the journal entries to record the restricted stock on January 1, 2025 (the date of grant), and December 31, 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit
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)?
The common stock of Blue Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $71 per share. 9.60 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. No. Account Titles and Explanation Debit Credit (a) (b) (To record the declaration) (To record the distribution)

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