Colson Corp. had $800,000 net income in 2025. On January 1, 2025, there were 200,000 shares of common stock outstanding. OnApril 1, 20,000 shares were issued and on September 1, Colson bought 30,000 shares of treasury stock. There are 30,000 options tobuy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%.In 2025, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of$3.50 per share, and is convertible into three shares of common stock.Colson issued $2,000,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares ofcommon stock.Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and otheranswers to O decimal places, e.g. 5241. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g.(45).)SecurityCommon Stock $OptionsBondsPreferredNetIncomeAdjustmentAdjustedNet IncomeShares Colson Corp. had $800,000 net income in 2025. On January 1, 2025, there were 200,000 shares of common stock outstanding. OnApril 1, 20,000 shares were issued and on September 1, Colson bought 30,000 shares of treasury stock. There are 30,000 options tobuy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%.In 2025, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of$3.50 per share, and is convertible into three shares of common stock.Colson issued $2,000,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares ofcommon stock.Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and otheranswers to O decimal places, e.g. 5241. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g.(45).)eSharesAdjustmentAdjustedSharesEPS

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

Answered: Colson Corp. had $800,000 net income in…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 24E

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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.
Blossom Corp. had $670,000 net income in 2025. On January 1, 2025, there were 180,000 shares of common stock outstanding. On April 1, 18,800 shares were issued and on September 1, Blossom bought 35,400 shares of treasury stock. There are 28,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%. In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of $3.50 per share, and is convertible into three shares of common stock. Blossom issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of common stock. Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and other answers to O decimal places, e.g. 5241. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses…
Q. Colson Corp. had $800,000 net income in 2018. On January 1, 2018 there were 200,000 shares of common stock outstanding. On April 1, 20,000 shares were issued and on September 1, Colson bought 30,000 shares of treasury stock. There are 30,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2018. The tax rate is 40%. During 2018, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock. Colson issued $2,000,000 of 8% convertible bonds at face value during 2017. Each $1,000 bond is convertible into 30 shares of common stock. Instructions: Compute diluted earnings per share for 2018. Complete the schedule and show all computations. Security Net Income Adjustment Adjusted Net income Shares Adjustment Adjustment Shares EPS
Rizzo Co. has Net Income of $279,000 for 2024. Over the past two years, the company had outstanding 125,000 shares of common stock. During the year, the company paid dividends on preferred stock in the amount of $45,000. The company has outstanding all year 20,000 shares of cumulative preferred stock. Each share of preferred stock is convertible into 4 shares of common stock. The company's tax rate is 20 percent. What is the company's basic earnings per share?
Rizzo Co. has Net Income of $279,000 for 2024. Over the past two years, the company had outstanding 125,000 shares of common stock. During the year, the company paid dividends on preferred stock in the amount of $45,000. The company has outstanding all year 20,000 shares of cumulative preferred stock. Each share of preferred stock is convertible into 4 shares of common stock. The company's tax rate is 20 percent. What is the company's diluted earnings per share?
3. Cullumber Corp. had $730,000 net income in 2025. On January 1, 2025, there were 200,000 shares of common stock outstanding. On April 1, 23,400 shares were issued and on September 1, Cullumber bought 32,700 shares of treasury stock. There are 28,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%. In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of $3.50 per share, and is convertible into three shares of common stock. Cullumber issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of common stock. Instructions Compute diluted earnings per share for 2025. Complete the schedule and show all computations. Net Adjust- Security Incomement Adjusted Net Income Adjust- Adjusted Shares ment Shares EPS 4. MagTech Inc. requires funding to build a new factory and has…
On January 1, 2023, Blue Corp. had 182,000 common shares outstanding. On April 1, 2023, 18,200 common shares were issued and on September 1, 2023, Blue bought back 28,200 treasury shares. The market price of the common shares averaged $50 during 2023. The corporation's income tax rate is 40%. During 2023, there were 28,200 call options to buy common shares at $40 a share outstanding; and there were 18,200, $8, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares. During 2022, the corporation had issued $2,020,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares. The corporation reported $729,000 net income for calendar 2023. Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g. 52.75.)…
Bonita Corporation earned net income of $443,000 in 2025 and had 110,000 shares of common stock outstanding throughout the year. Also outstanding all year was $700,000 of 5% bonds, which are convertible into 15,000 shares of common. Bonita's tax rate is 30 percent. Compute Bonita's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
On January 1, 2023, Concord Corp. had 212,000 common shares outstanding. On April 1, 2023, 21,200 common shares were issued and on September 1, 2023, Bernard bought back 31,200 treasury shares. The market price of the common shares averaged $50 during 2023. The corporation’s income tax rate is 40%.During 2023, there were 31,200 call options to buy common shares at $40 a share outstanding; and there were 21,200, $7, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares.During 2022, the corporation had issued $1,950,000 of 9% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares.The corporation reported $810,000 net income for calendar 2023.Calculate diluted earnings per share for 2023. Complete the schedule below. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round earnings per share to 2 decimal places, e.g.…
Windsor Corporation reported net income of $197,880 in 2025 and had 48,200 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Windsor's tax rate is 40%. Compute Windsor's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
On January 1, 2023, Monty Corp. had 206,000 common shares outstanding. On April 1, 2023, 20,600 common shares were issued and on September 1, 2023, Bernard bought back 30,600 treasury shares. The market price of the common shares averaged $50 during 2023. The corporation’s income tax rate is 40%.During 2023, there were 30,600 call options to buy common shares at $40 a share outstanding; and there were 20,600, $8, no par value, cumulative and convertible preferred shares outstanding. Each preferred share is convertible into three common shares.During 2022, the corporation had issued $1,910,000 of 7% convertible bonds at face value. Each $1,000 bond is convertible into 20 common shares.The corporation reported $780,000 net income for calendar 2023. Post answers in table below Security Net Income Adjustemt Adjusted Net Income Shares Adjustment Adjusted Shares EPS Comon Shares Options Preferred Shares Bonds
Dayton, Inc. had 100,000 shares of common stock outstanding at January 1, 2022. On March 31, 2022, an additional 24,000 shares were sold for cash. Dayton also had $8,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 80,000 shares of common stock. Net income for the year was $700,000. The tax rate is 25% Calculate both the basic and dilutive EPS

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