At January 1, 2020, Wildhorse Company's outstanding shares included the following.300,000 shares of $50 par value, 7% cumulative preferred stock959,000 shares of $1 par value common stock4Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, allpreferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrearsprior to 2020.On April 1, 2020, 476,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 102,000 shares of commorstock were purchased for $20 per share and held as treasury stock.Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2decimal places, e.g. $2.55.)Earnings per shareAsintance Iss

Earnings Per Share: A financial ratio called earnings per share (EPS) shows how much net income a…

Answered: At January 1, 2020, Wildhorse Company's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On January 30, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Bramble declared a 100% stock dividend on its common stock. Net income for 2021 was $1143000. In its 2021 financial statements, Bramble's 2021 earnings per common share should be $1.91. $3.79. $1.82. $3.59.
On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit a. Common Stock for $300,000. b. Common Stock for $300,000 and Paid-in Capital in Excess of Par for $150,000. c. Treasury Stock for $450,000. d. Treasury Stock for $300,000.
(b) Your answer is incorrect. If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders? Common Stock Dividends $ I
Gleneagles Corporation earned net income of $70,000 during the year ended December 31, 2020. On December 15, Gleneagles had declared the annual cash dividend on its $0.50 preferred shares (10,000 shares issued for $100,000) and a $0.60 per share cash dividend on its common shares (25,000 shares for $50,000). Gleneagles then paid the dividends on January 4, 2021. Journalize the following for Gleneagles Corporation: a. Declaring the cash dividends on December 15, 2020 b. Paying the cash dividends on January 4, 2021 Did Retained Earnings increase or decrease during 2020? By how much?
On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par and retained earnings of $749,000. The company issued 43,000 shares of common stock at par on July 1 and earned net income of $395,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2022, for the following two independent assumptions. (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.) (a) (b) No. Account Titles and Explanation (a) Par value is $10 and market price is $15. Par value is $5 and market price is $8. (b) Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Debit 277,425 147,960 Credit 184,950 277,425 92,475 332,910
On December 31, 2021, EOS Co.s shareholders' equity consisted of the following: 8%, cumulative preference share, P50 par, P55 liquidating value, 20,000 shares issued and outstanding; Ordinary share, P25 par, 100,000 shares issued and outstanding; Retained earnings P400,000 Dividends on the preferred shares have been paid through 2020, but no dividends have been declared yet for 2021. Compute for the book value per ordinary share on December 31, 2021. O P27.20 O P28.20 O P27.00 O P25.20 P22.70
At January 1, 2020, Teal Company’s outstanding shares included the following. 276,000 shares of $50 par value, 6% cumulative preferred stock 940,000 shares of $1 par value common stock Net income for 2020 was $2,512,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020.On April 1, 2020, 408,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 112,000 shares of common stock were purchased for $21 per share and held as treasury stock.Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $500,000. For 2021, basic earnings per common share amounted to:
On December 31, 2020, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred stock (par $10). On February 28, 2021, The preferred stock was convertible into 30,000 shares of common stock. Merlin issued an additional 36,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2021. On September 1, 2021, 9,000 shares were retired. At year- end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted for the stock dividend). The exercise price was $18. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2018 and convertible into 50,000 common shares (adjusted for the stock dividend). Net income was $900,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2021. (Round your answers to 2 decimal places.)
At the beginning of 2019, Hardin Company had 280,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 43,000 shares of stock at $21 per share. June 1 Issued a 15% stock dividend. July 1 Issued 9,000 shares of stock at $26 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 84,000 shares as treasury stock at a cost of $29 per share. Nov. 30 Reissued 53,000 treasury shares at a price of $32 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. fill in the blank2. Determine the number of common shares outstanding at December 31, 2019. fill in the blank
On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,180,000. The company issued 220,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $515,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Cash Dec. 15 く…
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