Compute BROWN’s earnings per share based on the assumption that the preference share is cumulative. BROWN Corporation has at December 31, 2021, 50,000 shares of P20 par value, 8% preference share, and200,000 shares of P5 par value ordinary share. All shares were outstanding the entire year. During 2021,BROWN earned total revenues of P2,000,000 and incurred total expenses (except income taxes) of P1,400,000.BROWN's income tax rate is 30%.

Earnings per share is calculated with the help help following formula Earnings Per Share = Earnings…

Answered: Compute BROWN’s earnings per share…

Business

Accounting

Compute BROWN’s earnings per share based on the assumption that the preference share is cumulative.

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

See similar textbooks

Related questions

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Asset classified as "held for use" means that the disposal of the asset will not take place and if…

Q: On June 30, 2015, Gell-O Corp paid USD48 per share for 50,000 shares, representing a 25% ownership…

A: Since Gell-O Corp acquired 25%, ownership interest in Migs Company, it will be treated as investment…

Q: A company's bank statement shows $715 direct debits and $353 investment income not recorded in the…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a…

A: As per Accounting standards for revenue recognition, service revenue should be recorded when…

Q: How much is the consolidated total equity? *

Q: A 50-dollar bill falls out of the pocket of a billionaire and is found by a homeless person. From a…

A: Pareto Improvement is Way of Allocating good that harm no one and atleast Benefit Someone

Q: In testing for lower-of-cost-or-market, the auditor is gathering evidence to support which of the…

A: The audit is an examination of the financial statement of the company that helps to find the errors…

Q: Theresa bought a car (5-year property) for $10,000 for her business on 1/3/2019. She used it 100%…

A: Depreciation: The term depreciation refers to an accounting method used to allocate the cost of a…

Q: Ovaltine Dairy Products produces milk on its farms. At January 1, 2019, Milo has 525 cows with…

A: Biological Assets The Accounting treatment of the Biological Assets which are taken the fair value…

Q: Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front…

A: calculation of gain or loss on bond DE- recognition are as follows

Q: ENN Corporation has interest expense of P16,000, sales of P600,000, a tax rate of 30%, and after-tax…

A: Times interest earned ratio = Earnings before interest and tax/interest expense where, Earnings…

Q: Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the…

A: The Correct Answer is Option "A" i.e. 60%

Q: Bonita Products desires to set atarget price for its newest product. Information for a budgeted…

A: Return on investment means the total profit that will be earned on the investment through selling…

Q: The engagement quality control reviewer (choose he INCORRECT one) Does not otherwise participate in…

A: The Engagement quality control reviewer is an associated person of a registered accounting firm. The…

Q: Liabilities which are estimated and payable are; Select one: O a. Not reported on the balance sheet…

A: Liabilities represents the obligation of the entity. It is the amount which is to be paid by the…

Q: CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Prepare a balance sheet, assuming that the current portion of the note payable is $7,000

A: Balance sheet refers to a statement which provides a brief summary of the company’s Assets, Owner’s…

Q: Discuss the effect of the misstatement identified on the audit opinion.

A: Introduction: A misstatement is the variation between the necessary quantity, classification,…

Q: Company A sells three products: B, C, and D. Budgeted information for the upcoming accounting…

A: The weighted average contribution margin is the overall contribution margin of all products.

Q: Refer to the above Tables. Tyler Perry a Movie Producer and Director at Lionsgate Studios is…

A: Capital budgeting techniques are those techniques which are used for selection of profitable…

Q: the pi "he CAPI he Gord The

Q: 6. The annual premium on an insurance policy is $1, 200. First, find the premium per period if…

A: Insurance is an agreement or arrangement between two parties where one party agrees to pay the…

Q: The understanding with the client

A: A good auditor is one who maintains a good understanding of his clients. An auditor should keep his…

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The journal entries can be defined as the base of accounting because the business transaction is…

Q: Compute Dividends. Beginning stockholders' equity S 17,700 Ending stockholders' equity 36.700…

A: Stockholders' equity is a combination of contributed capital, new issue, additional paid-in capital…

Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…

Q: Company XYZ ha

A: The total cost of production of a good comprises of the total fixed cost of production and the total…

Q: The following information on a defined benefit plan is provided: FVPA, beg…

A: Defined Benefit Plan Defined benefit plan which are provided to the employees of the entity after…

Q: DEF, Inc. had the following portfolio of financial assets as of December 31, 2021 before any…

A: Correct balance of the investment in equity securities = number of shares held x Trading price at…

Q: 10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per…

A: The dividend yield can be calculated by dividing the dividend per share by the market price per…

Q: An impairment test at June 30, 20x3 concluded that consolidat goodwill was impaired by P80,000.

Q: A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping…

A: Merchandise Inventory Costing: In case of FOB Shipping, the buyer pays the shipping charges The…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: risk over the cash disbursement function, the auditor notes a delay in recording disbursements. This…

A: when talking about control risk it is the risk that a material misstatement could occur this may be…

Q: The Jack and Jill Co., Balance Sheet as on December 31 a company's records show the following…

A: Working capital, also referred to as net cash flow (NWC), is the difference between a company's…

Q: Information risk is a. The cost a company incurs to issue and service equity and debt. b. The risk…

A: The company's information is provided in the financial statement of the company which is useful for…

Q: ny acquired thre preparing financi hat date, no forma

A: Calculation of amortization of intangible assets By straight line method formula = Cost/ Use full…

Q: Please answer number 10 only

A: Introduction:- The following are two basic categories of internal controls – preventive and…

Q: • Trade terms: list less 20%,15%. • Payment terms: 3/10, n/30. Find: a. The last day for payment b.…

A: When analysing the credit policy and payment with respect to discount received it is important to…

Q: 9. The market price per share of TEE Co. stock at the beginning of the year was P60.00 and at the…

A: Price Earning Ratio The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that…

Q: Bravo company lended cash to Charlie company on February 1. It will be paid after a year. The…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: A company has $100,000 of share capital and $60,000 Retained Earnings at the end of 2020, and…

A: Retained earnings ending balance is result of retained earnings beginning balance plus Net income…

Q: Spreadsheet exercise A bowling alley costs P500,000 and has a useful life of 10 years. Its…

A: Depreciation indicates the reduction in the hysterical cost of the tangible asset of the…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Introduction: A share is a unit of equity ownership of a company. Dividends are paid to shareholders…

Q: Vhat is the correct amount of inventory?

A: amount of inventory = FG + cost + goods in process +material + factory supplies

Q: D. Lawrance designs and manufactures fashionable men’s clothing. For the coming year, the company…

A: The effect of new or special orders can be evaluated by determining their incremental effect on…

Q: Given the facts in the question above, what is the figure for the bank balance to be reported in the…

A: Introduction: When you make a payment, credit is applied to your account. When you return something…

Q: Vicki Vale operates a convenience store while at the same time offers bookkeeping services to her…

A: Taxable income is the one which is computed after deducting the expenses from the revenues. It also…

Q: Current ratio Debt Ratio 0 33 TIE 05

A: The current ratio is the ratio that tells about the relationship between the current assets and…

Q: From the following details, calculate interest coverage ratio: Net Profit after tax $ 60,000; IS%…

A: The interest coverage ratio determines a firm's ability to pay interest on its outstanding debt.…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Compute BROWN’s earnings per share based on the assumption that the preference share is cumulative.

BROWN Corporation has at December 31, 2021, 50,000 shares of P20 par value, 8% preference share, and
200,000 shares of P5 par value ordinary share. All shares were outstanding the entire year. During 2021,
BROWN earned total revenues of P2,000,000 and incurred total expenses (except income taxes) of P1,400,000.
BROWN's income tax rate is 30%.

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Swifty Corporation earned net income of $348,400 in 2020 and had 113,000 shares of common stock outstanding throughout the year. Also outstanding all year was $850,000 of 5% bonds, which are convertible into 15,000 shares of common. Swifty's tax rate is 20 percent. Compute Swifty's 2020 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $ LA
Nash Corporation had net sales of $2,416,400 and interest revenue of $33,800 during 2020. Expenses for 2020 were cost of goods sold $1,458,000, administrative expenses $215,200, selling expenses $291,000, and interest expense $52,500. Nash’s tax rate is 30%. The corporation had 103,000 shares of common stock authorized and 73,570 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Marigold Corporation had net sales of $2,400,900 and interest revenue of $37,400 during 2020. Expenses for 2020 were cost of goods sold $1,466,300, administrative expenses $221,700, selling expenses $298,700, and interest expense $45,300. Marigold’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 74,370 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)
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 $
Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2020. Expenses for 2020 were cost of goods sold $1,450,000, administrative expenses $212,000, selling expenses $280,000, and interest expense $45,000. Brisky’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Brisky Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Kingbird Corporation had net sales of $2,413,600 and interest revenue of $37,500 during 2020. Expenses for 2020 were cost of goods sold $1,469,200, administrative expenses $221,600, selling expenses $294,200, and interest expense $54,800. Kingbird's tax rate is 30%. The corporation had 107,700 shares of common stock authorized and 74,650 shares issued and outstanding during 2020. Prepare a single-step income statement for the year ended December 31, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.) KINGBIRD CORPORATION Income Statement
Carla Corporation reported net income of $315,350 in 2020 and had 50,500 shares of common stock outstanding throughout the year. Also outstanding all year were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Carla’s tax rate is 30%.Compute Carla’s 2020 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $
Vaughn Corporation had net sales of $2,413,000 and interest revenue of $34,000 during 2020. Expenses for 2020 were cost of goods sold $1,455,300, administrative expenses $212,700, selling expenses $294,600, and interest expense $53,200. Vaughn's tax rate is 30%. The corporation had 107,700 shares of common stock authorized and 73,230 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Vaughn Corporation. (Round eamings per share to 2 decimal places, eg 1.48)
Concord Corporation had net sales of $2,429,400 and interest revenue of $34,300 during 2025. Expenses for 2025 were cost of goods sold $1,454,500, administrative expenses $214,500, selling expenses $299,000, and interest expense $48,800. Concord's tax rate is 30%. The corporation had 109,600 shares of common stock authorized and 62,566 shares issued and outstanding during 2025. Prepare a condensed multiple-step income statement for Concord Corporation (Round earnings per share to 2 decimal places, e.g. 1.48.) CONCORD CORPORATION Income Statement $ $