Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years: Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,147 $3,765 $1,920 $3,212 Average number of common shares outstanding 594 599 334 363 a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.
Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:
| Dakota | Jersey | ||||||
| Year 2 | Year 1 | Year 2 | Year 1 | ||||
| Net income | $2,147 | $3,765 | $1,920 | $3,212 | |||
| Average number of common shares outstanding | 594 | 599 | 334 | 363 |
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.
| Year 2 | Year 1 | |
| Dakota | $fill in the blank 1 per share | $fill in the blank 2 per share |
| Jersey | $fill in the blank 3 per share | $fill in the blank 4 per share |
Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:
| Retained earnings, February 1, 20Y1 | $491,900 |
| Net income | 73,800 |
| Cash dividends declared | 13,300 |
| Stock dividends declared | 25,100 |
Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2.
| Sumter Pumps Corporation | ||
| Retained Earnings Statement | ||
| For the Year Ended January 31, 20Y2 | ||
| Retained Earnings, February 1, 20Y1 | $fill in the blank 2 | |
| Net Income | $fill in the blank 4 | |
| Dividends Declared | fill in the blank 6 | |
| Increase in Retained Earnings | fill in the blank 8 | |
| Retained Earnings, January 31, 20Y2 | $fill in the blank 10 |
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:
| Common Stock, $15 par | $522,000 |
| Paid-In Capital from Sale of |
21,400 |
| Paid-In Capital in Excess of Par—Common Stock | 13,920 |
| Retained Earnings | 819,000 |
| Treasury Stock | 10,830 |
Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 570 shares have been reacquired.
| Goodale Properties Inc. | |||
| Stockholders' Equity | |||
| June 30, 20XX | |||
| Paid-In Capital: | |||
| Common Stock, $45 Par (80,000 Shares Authorized, 11,600 Shares Issued) | $fill in the blank 2 | ||
| Excess over par | fill in the blank 4 | ||
| Paid-in capital, common stock | $fill in the blank 6 | ||
| From Sale of Treasury Stock | fill in the blank 8 | ||
| Total Paid-In Capital | $fill in the blank 9 | ||
| Retained Earnings | fill in the blank 11 | ||
| Total | $fill in the blank 12 | ||
| Treasury Stock (570 Shares at Cost) | fill in the blank 14 | ||
| Total Stockholders' Equity | $fill in the blank 15 |
Treasury Stock Transactions
Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 14,600 shares of its common stock at $31 per share. On June 14, 9,200 of the reacquired shares were sold at $33 per share, and on November 23, 3,500 of the reacquired shares were sold at $33.
a. Journalize the transactions of January 31, June 14, and November 23. For a compound transaction, if an amount box does not require an entry, leave it blank.
| Jan. 31 | Treasury Stock | fill in the blank 300ecefb3f8a063_2 | |
| Cash | fill in the blank 300ecefb3f8a063_4 | ||
| June. 14 | Cash | fill in the blank 300ecefb3f8a063_6 | fill in the blank 300ecefb3f8a063_7 |
| Treasury Stock | fill in the blank 300ecefb3f8a063_9 | fill in the blank 300ecefb3f8a063_10 | |
| Paid-In Capital from Sale of Treasury Stock | fill in the blank 300ecefb3f8a063_12 | fill in the blank 300ecefb3f8a063_13 | |
| Nov. 23 | Cash | fill in the blank 300ecefb3f8a063_15 | fill in the blank 300ecefb3f8a063_16 |
| Treasury Stock | fill in the blank 300ecefb3f8a063_18 | fill in the blank 300ecefb3f8a063_19 | |
| Paid-In Capital from Sale of Treasury Stock | fill in the blank 300ecefb3f8a063_21 | fill in the blank 300ecefb3f8a063_22 |
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
$fill in the blank 734012ff804507c_1 Credit
c. What is the balance in Treasury Stock on December 31 of the current year?
$fill in the blank 734012ff804507c_3 Debit
Effect of Stock Split
Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 63,000 shares of common stock outstanding, declared a 3-for-1 stock split.
a. What will be the number of shares outstanding after the split?
fill in the blank 1 shares
b. If the common stock had a market price of $228 per share before the stock split, what would be an approximate market price per share after the split?
$fill in the blank 2 per share
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