Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Preferred Common Stock, $1 Additional Paid- Stock, $10 par par in Capital $ 65 $0 $ 575 7 7 $7 6 71 (6) 32.5 97.5 9.75 3 $ 110.25 570 90 1,235 (45) (32.5) 1,157.5 90 36 $ 1,283.5 Retained Earnings $ 1,910 (1) (18) 400 2,291 (30) (1) (22) 500 2,738 (99.75) (2) (38) 444 $ 3,042.25 Total Shareholders' Equity $ 2,550 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, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55). 577 96 (1) (18) 400 3,604 (81) (1) (22) 500 4,000 39 (2) (38) 444 $4,443
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Preferred Common Stock, $1 Additional Paid- Stock, $10 par par in Capital $ 65 $0 $ 575 7 7 $7 6 71 (6) 32.5 97.5 9.75 3 $ 110.25 570 90 1,235 (45) (32.5) 1,157.5 90 36 $ 1,283.5 Retained Earnings $ 1,910 (1) (18) 400 2,291 (30) (1) (22) 500 2,738 (99.75) (2) (38) 444 $ 3,042.25 Total Shareholders' Equity $ 2,550 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, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55). 577 96 (1) (18) 400 3,604 (81) (1) (22) 500 4,000 39 (2) (38) 444 $4,443
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18P
Related questions
Question
shj.7
Transcribed Image Text:Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years
ending December 31, 2022, 2023, and 2024.
Balance at January 1, 2022
Sale of preferred shares
Sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2022
Retirement of common shares, 4/1
LOCKE INTERTECHNOLOGY CORPORATION
Statements of Shareholders' Equity
For the Years Ended December 31, 2022, 2023, and 2024
($ in millions)
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, 2023
10% common stock dividend, 5/1
Sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2024
Preferred Common Stock, $1 Additional Paid-
Stock, $10 par
in Capital
$0
$575
570
7
90
7
7
$7
par
$ 65
6
71
(6)
32.5
97.5
9.75
3
$ 110.25
1,235
(45)
(32.5)
1,157.5
90
36
$ 1,283.5
Retained Earnings
$ 1,910
(1)
(18)
400
2,291
(30)
(1)
(22)
500
2,738
(99.75)
(2)
(38)
444
$ 3,042.25
Total
Shareholders'
Equity
$ 2,550
577
96
(1)
(18)
400
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, 2022, 2023, and
2024. No potential common shares were outstanding during any of the periods shown.
Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should
be entered as 5.55).
3,604
(81)
(1)
(22)
500
4,000
39
(2)
(38)
444
$ 4,443
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