Computing EPS: Contingently Issuable SharesOn 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 increasedby 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, whichrepresented a 7% increase over the prior year. How will the options affect the calculation of the company's diluted earnings per share?Increasethe denominatorMy0x sharesCheck

Answer:-Earnings per share:- A financial indicator called earnings per share shows how much of a…

Answered: Computing EPS: Contingently Issuable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Current Attempt in Progress Sunland Company acquired 22000 shares of its own common stock at $21 per share on February 5, 2020, and sold 11000 of these shares at $28 per share on August 9, 2021. The fair value of Sunland's common stock was $25 per share at December 31, 2020, and $26 per share at December 31, 2021. The cost method is used to record treasury stock transactions. What account(s) should Sunland credit in 2021 to record the sale of 11000 shares? O Treasury Stock for $231000 and Retained Earnings for $77000. O Treasury Stock for $275000 and Retained Earnings for $33000. O Treasury Stock for $308000. O Treasury Stock for $231000 and Paid-in Capital from Treasury Stock for $77000.
help me
None
8
Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
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.
12) ABSD INC.'s B.O.D's approved issuance of 5,000,000 share of $50 par value common stock. Currently 4,200,000 shares are outstanding. Current stock price is $60 A 4% stock dividend is declared on March 1, 2020 and paid two months later. Show journal entries required to record declaration and payment of distribution.
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…
Options were granted on January 1, 2023by Paltel Co. to purchase 15,000 common shares at an exercise price of $22. The average market price of Paltel's common stock during 2023 was $30 per share. Calculate the incremental shares (denominator) for these options on December 31, 2023.
Practice Exercises - Restricted Stock 1. Studymore Company issues 4,400 shares of restricted stock to its CFO, Dane Nowork, on January 1, 2020. The stock has a fair value of $123,000 on this date. The service period related to this restricted stock is 4 years. Vesting occurs if Nowork stays with the company for 4 years. The par value of the stock is $5. At December 31, 2021, the fair value of the stock is $133,000. Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021. On March 4, 2022, Nowork leaves the company. Prepare the journal entry to account for this forfeiture. General Journal Debit Credit ASH ENC INT

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS