Computing EPS: Contingently Issuable SharesOn January 1, to motivate top management, Reezz Inc. granted 1,000 options to purchase common stock at $10 pershare to key officers if net income increased by 5% over the prior year. The fair value of the options on January 1 isestimated to be $5,000. Reezz Inc. reported net income of $50,000 for the year, which represented a 7% increase over theprior year. How will the options affect the denominator in the calculation of the company's diluted earnings per share?Increase→ the denominator ♦ by0x shares.

Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Answered: Computing EPS: Contingently Issuable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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ANSWERED Sunday, May 29, 2022 BUSINESS ACCOUNTING Journalize the following transaction: Mining corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It's also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transaction: 1-May issued 3,000 shares of preferred stock for Cash at $750 per share. 23-May issued 6,000 shares of common stock at $12.50 Per share. Jun.10 issued 5,000 shares of common stock for equipment without a readily determinable value. The stock is currently trading at $11 per share. Journalize the transactions √x 8
Queenstown Corporation issues 4,000, $4 cumulative preferred shares at $80 each and 12,000 common shares at $18 at the beginning of 2022. Each preferred share is convertible into four common shares. During the years 2022 and 2023, the following transactions affected Queenstown Corporation's shareholders' equity accounts: 2022 Dec. 10 Declared and paid $12,000 of annual dividends to preferred shareholders. 2023 Dec. 10 Dec. 21 Required: a) b) Declared and paid the annual dividend to preferred shareholders and a $4,000 dividend to common shareholders. The preferred shares were converted into common shares. Journalize each of the 2022 and 2023 transactions. After the preferred shares are converted, what is the total number of common shares issued?
None
Shares Sold – Subscription Basis On January 1, 2020, Aylmer offered to sell some shares on a subscription basis. The offer was for fifty individuals to purchase 100 common shares each at $20 per share. 60% of the amount was paid on June 30,2020. That transaction was recorded properly in the accounting records of Aylmer. The remaining amount will be received on June 30, 2021. NOTE - There is not a spreadsheet in the Excel file. Review the trial balance. You should determine if an entry should be made or not and make the required entry(ies) as necessary in the Excel tab labelled “Journal Entries” Trial Balance Unadjusted Trial Balance At December 31, 2019 At December 31, 2020 Preferred Shares 500,000 500,000 Common Stock 1,000,000 1,500,000 Common Stock Subscribed 100,000 Retained Earnings 337,366 692,275
Treasury Stock On February 28, 2020 Clock Clocky Corporation issued 150,000 shares of $10.00 Par Value stock for $12.00 per share. On April 15, 2020 Clock Clocky purchased 60% of the shares from shareholders at $8.00 each to hold as treasury stock. On November 25, 2020, Clock Clocky reissued the shares held in treasury at $12.00 per share. Instruction:- Record all transactions using the (i) Cost Method, and (ii) Par Value Method.
What is the balance of the share capital as of year-end?
Recording Shares Issued through an Employee Share Purchase Plan Rice Corporation has a stock purchase plan with the following provision. Each full-time employee with a minimum of one year’s service may acquire from Rice Corporation, its common stock, $10 par, through payroll deductions at 5% below the market price on the date selected by the employee for a stock purchase (the exercise date). The exercise decision must be made within one year from the payroll deduction date. Employee Adams signed a payroll deduction agreement form on January 1, 2020, for $48 per month. At that date, the market price of the stock was $27 per share. At the end of 2020, Adams requested that stock be purchased equal to the amount Adams accumulated as a deposit. At that date, the market price of the stock was $25 per share. Required Prepare the journal entry on December 31, 2020, for the issuance of shares to Adams. Hint: The company credited Liability—Employee Stock Purchase Plan at the time of each payroll…
Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 94,000 common stock and 15,000 preferred stock. The State of Michigan authorized Mulligan to issue 16,000 shares of 6% preferred stock with a par value of $35 per share and 95,000 shares of common stock with a par value of $5 per share. Any common stock sold during the year had a selling price of $16 per share. Mulligan's preferred stock was issued at $52.50. Required: Prepare the journal entry to record the issuance of stock during the year. If an amount box does not require an entry, leave it blank. Cash Preferred Stock Additional Paid-in Capital-Preferred Stock Common Stock Additional Paid-In Capital-Common Stock 475,000 WALSHAASTE 475,000
Computing EPS: Contingently Issuable Shares On January 1, to motivate top management, Resume Inc. granted 800 options to purchase common stock at $10 per share to key officers if net income increased by 5% over the prior year. The fair value of the options on January 1 is estimated to be $4,000. Resume Inc. reported net income of $40,000 for the year, which represented a 7% increase over the prior year. How will the options affect the calculation of the company's diluted earnings per share? Increase the denominator My 0x shares Check
N1. Account
IFA Corporations had Net Income of $780,000 and the following information for January 2021 to December 2021.Ordinary shares issued and outstanding:Jan 1 500,000 sharesMarch 1 300,000 shares.June 1 A 10% share dividendAugust 1 120,000 shares.October 1 700,000 shares.December 1 A 2 for 1 share splitOn January 1, 10% convertible debentures, $60,000,000 face value, were issued at par. Each $1,000 debenture is convertible into 40 ordinary shares. The interest expense for the current year related to the liability component of the convertible debentures is $6,500,000.250,000 preference shares outstanding, $60 par, 10% cumulative, not convertible.Options were granted to purchase 400,000 ordinary shares at $18 each. The company’s average market price of ordinary shares was $24.10-year $3,000,000 face value, 8% bonds issued at par on May 1. Each $500 bond is convertible into 30 ordinary shares. The interest expense on the liability component of convertible bonds for the year was $360,000The tax…

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