Balance at January 1, 2019 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 ($ in millions) Preferred Stock, $10 par 10 10 10 $10 Common Stock, $1 par $ 45 9 54 (8) 23.0 69.0 6.90 3 $78.90 Additional Paid-in Capital 555 530 86 $ 1,171 (41) (23.0) 1,107.0 90 32 $1,229.0 Retained Earnings. $ 1,902 (1) (14) 360 2,247 (26) (1) (18) 460 2,662 (96.90) (5) (34) 436 $2,962.10 Total Shareholders' Equity $2,502 540 95 (1) (14) 360 3,482 (75) (1) (18) 460 3,848 35 (5) (34) 436 $4,280 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Balance at January 1, 2019 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 ($ in millions) Preferred Stock, $10 par 10 10 10 $10 Common Stock, $1 par $ 45 9 54 (8) 23.0 69.0 6.90 3 $78.90 Additional Paid-in Capital 555 530 86 $ 1,171 (41) (23.0) 1,107.0 90 32 $1,229.0 Retained Earnings. $ 1,902 (1) (14) 360 2,247 (26) (1) (18) 460 2,662 (96.90) (5) (34) 436 $2,962.10 Total Shareholders' Equity $2,502 540 95 (1) (14) 360 3,482 (75) (1) (18) 460 3,848 35 (5) (34) 436 $4,280 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject - Acounting
Transcribed Image Text:Balance at January 1, 2019
Sale of preferred shares
Sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2019
Retirement of common shares, 4/1
Cash dividend, preferred
Cash dividend, common
3-for-2 split effected in the form of a
common stock dividend, 8/12
Net income
Balance at December 31, 2020
10% common stock dividend, 5/1
Sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2021
($ in millions)
Preferred
Stock,
$10 par
10
10
10
$10
Common
Stock,
$1 par
45
$
9
54
(8)
23.0
69.0
6.90
3
$78.90
Additional
Paid-in
Capital
555
530
86
$
1,171
(41)
(23.0)
1,107.0
90
32
$1,229.0
Retained
Earnings
$ 1,902
(1)
(14)
360
2,247
(26)
(1)
(18)
460
2,662
(96.90)
(5)
(34)
436
$2,962.10
Total
Shareholders
Equity
$2,502
540
95
(1)
(14)
360
3,482
Required:
Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and
compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and
2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2
decimal places (i.e., 5,500,000 should be entered as 5.50).)
(75)
(1)
(18)
460
3,848
35
(5)
(34)
436
$4,280
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