Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of commonshares outstanding of 10,000. The following information is provided regarding the capital structure:1.2.(a1)(a2)8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year.The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year.3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertibleinto 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares wereconverted during the year.Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.)Basic earnings per shareeTextbook and Media

The earnings per share (EPS) is the financial ratio that represents the portion of the net income…

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Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
Below is select information from two, independent companies. Additional information includes: On January 1, Company A issued a 5-year $1,500,000 bond with at 6% stated rate. Interest is paid semiannually and the bond was sold at 105.5055 to yield a market rate of 4.75%. On January 1, Company B sold $1,500,000 of common stock and paid dividends of $75,000. A. Prepare an income statement for each company (ignore taxes) B. Explain why the net income amounts are different, paying particular attention to the operational performance and financing performance of each company. (Hint: it may be helpful for you to create an amortization table).
On January 1, Jim Shorts Corporation issued bonds for $580 million. This bond issue was originally issued at premium. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared using the indirect method, Jim Shorts Corporation should report: O that $1.5 million to be added to net income O An investing activity of $580 million. O A financing activity of $300 million. O that $1.5 million to be deducted from net income
The following information relates to the debt investments of Concord Inc. during a recent year: 1. On February 1, the company purchased Gibbons Corp. 10% bonds with a face value of $372,000 at 100 plus accrued interest. Interest is payable on April 1 and October 1. 2. On April 1, semi-annual interest was received on the Gibbons bonds. 3. On June 15, Sampson Inc. 9% bonds were purchased. The $248,000 par-value bonds were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On August 31, Gibbons bonds with a par value of $74,400 purchased on February 1 were sold at 99 plus accrued interest. 5. On October 1, semi-annual interest was received on the remaining Gibbons bonds. 6. On December 1, semi-annual interest was received on the Sampson bonds. 7. On December 31, the fair values of the bonds purchased on February 1 and June 15 were 98.5 and 101, respectively. Assume the investments are accounted for under the recognition and measurement requirements of…
Keystone Corporation's balance sheet showed the following liability and stockholders' equity amounts: Current Liabilities, $100,000; Bonds Payable, $150,000; Long-Term Lease Obligations, $20,000; Deferred Income Tax Liability, $5,000; and total stockholders' equity, $500,000. The debt-to-equity ratio is Oa. 0.35. Оb. 0.20. Ос. 1.22. Od. 0.55.
On January 2, $217981 in 10 year, 5% bonds with a market interest rate of 9%, and interest payable semiannually, were issued for $185895.On June 30, bond interest was paid. On December 31, the corporation showed an after tax Net Income of $53586. On December 31, bond interest was paid; and dividends were declared and paid. What is the Bond Interest Expense on the Income Statement on December 31? On January 2, $186442 in 11 year, 9% bonds with a market interest rate of 6%, and interest payable semiannually, were issued for $206254. On June 30, bond interest was paid. On December 31, the corporation showed an after tax Net Income of $59680. On December 31, bond interest was paid; and dividends were declared and paid. What is the Bond Interest Expense on the Income Statement on December 31?
Cullumber Corporation reported net income of $328,000 in 2023 and had 945,000 common shares outstanding throughout the year. On May 1, 2023, Cullumber issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. Total proceeds at par amounted to $900,000 and were allocated to the liability and equity components under the residual value method. The liability component was measured first, at the present value of the stream of interest payments plus the present value of the bond maturity value, all discounted at 8% (the interest rate that applies to similar straight bonds). At the time of issuance, the liability component was recorded at $822,000. Cullumber's tax rate is 30%. Calculate Cullumber's 2023 diluted earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share $
Pharoah Corporation had the following transactions pertaining to debt investments. 1. Purchased 80 Leeds Co. 8% bonds (each with a face value of $1,000) for $80,000 cash. Interest is payable annually on January 1,2022. 2. Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 70 Leeds Co. bonds for $76,300 on January 1, 2023. Journalize the transactions. (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 journal entries in the order presented in the problem.) No. Date 1. 2. 3. 4. Account Titles and Explanation Debit Credit
Kier Company issued $740,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. The bonds have a 5.50% stated rate of interest interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O Zero and $40,700 $40,700 and $40,700 Zero and Zero $40,700 and Zero
XYZ Corporation reported net income of $6 million for the year ended 2021. It has 900,000 shares of common stock and 50,000 shares of non-cumulative, non-convertible,9% preferred stock outstanding throughout the year. At the beginning of the year the corporation issued $2 million of 5% convertible bonds,each $1,000 bond convertible into 5 shares of common. XYZ Corporation's income tax rate is 20% Calculate XYZ Corporation's 2021 diluted EPS, assuming the company paid annual cash dividend of $450,000 and $150,000 to common and preferred stockholders', respectively. $6.22 $6.52 $6.25 $6.43
On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cross report? $ 8,000 $12,000 $14,000 $ 6,000
Pharoah Corporation had the following transactions pertaining to debt investments. 1 Purchased 60 Leeds Co. 8% bonds (each with a face value of $1,000) for $60,000 cash. Interest is payable annually on January 1,2022 2 Accrued interest on Leeds Co. bonds on December 31, 2022. 3. Received interest on Leeds Co. bonds on January 1, 2023. 4. Sold 50 Leeds Co. bonds for $52,500 on January 1, 2023. Journalize the transactions. (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 0 for the amounts. Record journal entries in the order presented in the problem.) No. Date 2 3. Account Titles and Explanation Debit Cred