At December 31, 2019, Talbot Corporation had 90,000 shares of common stock and 20,000 shares of convertible preferred stock outstanding, in addition to 9% convertible bonds payable in the face amount of $2,000,000. During 2019, Talbot paid dividends of $2.50 per share on the preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 9% convertible bonds are convertible into 30,000 shares of common stock. Net income for 2019 was $970,000. Assume an income tax rate of 30%. How much is the diluted earnings per share for the year ended December 31, 2019?
Q: During 2021, Erin Corporation had 9,000,000 shares of common stock and 500,000 shares of 6%…
A: Diluted EPS is adjusted basic EPS for the securities with conversion option, which may dilute the…
Q: On July 1, 2020, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its…
A: Preferred share: These shareholders received a fixed dividend. These are considered a liability for…
Q: J Corporation issued 400,000 ordinary shares when it began operations in 2019 and issued an…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Kingbird Corp.…
A: Particulars Debit Credit Cash a/c Dr $26,394,000 To 6%…
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: ardent co has 5,000,000 ordinary shares of 25 cents each in issue,and also had an issue in 2019;…
A: Ordinary shares= $5,000,000 of 25 cents 14% convertible loan stock= $1,000,000 convertible in three…
Q: On January 1, 2020, Company D issued 6,000 shares of its $2 par Common Stock when the market price…
A: Common stock: Common stock is an equity ownership in organization. Common stockholders have a…
Q: The Ohana Corporation has 20,000 shares of common stock outstanding throughout 2021. In addition,…
A: Diluted EPS = Net Income+After Tax Cost of InterestCommon Shares Outstanding + Additional shares to…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: EPS stands for earnings per share which denotes the earnings which are available to distribute to…
Q: On January 1, 2021, Starlight Company converted $150,000 bonds into 90,000 shares of $1 par value…
A: The bonds are the financial instruments used by the business to raise money from the investors of…
Q: During 2021, Angel Corporation had 900,000 shares of common stock and 50,000 shares of 9% preferred…
A:
Q: Concord Corporation had 199000 shares of common stock, 20700 shares of convertible preferred stock,…
A: The computation of the Basic earnings per share for 2021 is as follows:
Q: During 2021, Erin Corporation had 9,000,000 shares of common stock and 500,000 shares of 6%…
A: Since multiple questions are posted as per guideline only the first question (Question number:20)…
Q: XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000…
A: Earnings per share shows the company’s earning per outstanding share. It is generally calculated on…
Q: At January 1, 2019, the capital structure of PTC Corp. contained the following: Common stock -…
A: Calculation of weighted average share Date Particulars Months Shares Average shares Jan 1, 2019…
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A: The weighted average number of shares outstanding are calculated as shares outstanding with the…
Q: Francis Company has 16,800 shares of common stock outstanding at the beginning of 2019. Francis…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: At the beginning of 2019, Hardin Company had 340,000 shares of $10 par common stock outstanding.…
A: 1. oustanding Shares Months Weighted Average Beginning Balance 340000 2 Months…
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: On January 1, 2020, ABC Co. acquired 50,000 of its 30 par ordinary shares and held them in treasury.…
A: The issued shares remains constant until the shares are retired or new shares are issued.
Q: On January 1, 2021, Tonge Industries had outstanding 820,000 common shares ($1 par) that originally…
A: EPS is earnings per share it is calculated using the following formula : Basic EPS : Net income -…
Q: Sheffield Corporation is authorized to issue 23,000 shares of $50 par value, 10% preferred stock and…
A: Date Account Titles and Description Debit ($) Credit ($) Feb 1 Land 129,000…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Earnings per share is the ratio which is used to calculate what amount of profit before tax is…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 720 million common…
A: In order to determine the Earning per share, the total earning available to the equity shareholder's…
Q: On January 1, 2021, Tonge Industries had outstanding 460,000 common shares ($1 par) that originally…
A: Numerator / Denominator = Earning per share Basic $ 550,000 / 463,000 =…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Basic EPS = Net incomeWACSWACS=Weighted Average common shares = Common shares * time outstanding12=…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 700 million…
A: Basic earnings per share = ( Net income - Preferred dividend ) / weighted average number of shares
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Plato Corp.…
A:
Q: 1) On July 1, 2021, an interest payment date, $120,000 of ABC Co. bonds were converted into 2,000…
A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…
Q: During 2021, Omnicom Corp had 1,000,000 shares of common stock and 60,000 shares of 6% preferred…
A: Earnings-Per-Share(EPS) refers to portion to net profit that pertains to each individual common…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 760 million…
A: Working Calculation of Income for common stock holders Amount (Million) Working Net…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common…
A: Earning Per Share: Company net profits are divided by the number of common shares it has…
Q: On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 307,000 shares of…
A: Basic EPS Numerator Net income $ 2,450,000 Less : Preferred div $ 76,000 Income…
Q: XYZ Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000…
A: Earnings per shares (EPS):-It is the ratio that helps in determining the per share contribution in…
Q: On July 1, 2019, when its $1 par value common stock was selling for $66 per share, Marin Corp,…
A: Date Account Titles and Explanation Debit Credit July 1, 2019 Cash $ 27,348,000…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Basic EPS = net income/WACS WACS = weighted average common shares = common shares * time…
Q: The information below pertains to Pierpont Corp. for 202 Net income, $1,200,000. Common Stock, $10…
A: The formula for calculating basic EPS involves dividing net income by the number of common shares…
Q: T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019…
A: A journal entry is the first step in chronicling financial transactions in the books of business…
Q: At the beginning of 2019, Hardin Company had 200,000 shares of $10 par common stock outstanding.…
A: Solution: Introduction: Share of stock represents both Common and Preferred stock of capital which…
Q: ABC Inc. has 3,600,000 ordinary shares outstanding on December 31, 2019. An additional 800,000…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A: Date Outstanding x Effect of the stock dividend x Effect of split x Fraction of period = Weighted…
Q: On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per…
A: Share premium is the premium or additional paid in capital which has been received by the company in…
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: how much should be the diluted EPS to be presented by VENUS Company for the year ended December 31,…
A: The calculation of diluted EPS to be presented by VENUS Company for the year ended 31 December, 2020…
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: answer with calculations re as follows.
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Earnings Per Share - Businesses all over the world exist to make money and increase the wealth of…
Q: Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on…
A: Annual preferred dividend = 104,000 shares x $19 x 9% = $177,840
Q: The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,…
A: working note: income available to common share after conversion = (net income - preferred dividend…
At December 31, 2019, Talbot Corporation had 90,000 shares of common stock and 20,000 shares of convertible
-
$7.83
-
$8.82
-
$9.35
-
$10.22
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.