Exercise 18-9 (Algo) New equity issues; offerings announcements [LO18-4]WWhen companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume thefollowing were among the equity offerings reported in December 2024:New Securities IssuesEquityAmerican Materials Transfer Corporation (AMTC)-8.0 million common shares, $0.001 par, priced at $14.816 each through underwritersled by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official.Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $16.60 a share via lead managerStanley Brothers, Incorporated, according to a syndicate official.Required:Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin whole dollars and not in millions.

Answer information:Computation:EventParticularsDebitCreditAMTCCash(8 Million Shares X…

Answered: Exercise 18-9 (Algo) New equity issues;…

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 14P

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Subject: acounting
Subject : Accounting
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29/4/2021 https://translate.googleusercontent.com/translate_f P12-14 Share repurchase : The following financial information is available on the Bond Recording Company: Earnings available to $ 800,000 common shareholders Number of common shares outstanding 400,000 Earnings per share ($ 800,000 +400,000) $ 2 Market price per share $ 20 Price / Earning Ratio (P / E) ($ 20 + $ 2) 10 The company is currently contemplating whether to use $ 400,000 of its earnings to pay cash dividends of $ 1 per share or to buy back shares at $ 21 per share. About how many shares can the company buy back at the price of $ 21 per share using the funds that would be used to pay the dividend in cash? а. b. Calculate EPS after repurchase. Explain your calculations. С. If the shares are sold at a price 10 times higher than the earnings, what will the market price be after the buyback? Compare the positions of the shareholders under the dividend payment and share buyback alternatives. What are the tax implications…
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Check my work Problem 19-18 (Static) EPS; stock options; nonconvertible preferred; convertible bonds; shares sold (LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9] At January 1, 2021, Canaday Corporation had outstanding the following securitles: 600 million common shares 20 million 6% cumulative preferred shares, $50 par 6.4% convertible bonds, $2,000 million face amount, convertible into 80 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. • Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $18 per share during 2021. Canaday's net income for the year ended December 31, 2021, was $1,476 million. The effective income tax rate was 25%. Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended…
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Chec Exercise 19-21 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9] Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021 100,000 2020 100,000 Common shares Convertible preferred shares (convertible into 32,000 shares of common) 88 convertible bonds (convertible into 30,000 shares of common) 12,000 12,000 $1,p00,000 $1,000,000 Ames's net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculatlons.) Numerator Denominator Earnings per Share Basic 1. %3D Diluted 8 of 18 Next >
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When companies offer new equity security issues, they publicize the offerings in the financial press and on Inter- net sites. Assume the following were among the equity offerings reported in December 2016: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-7.5 million common shares, $.001 par, priced at $13.546 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Co., according to a syndicate official. Proactive Solutions Inc. (PSI)-Offering of nine million common shares, $.01 par, was priced at $15.20 a share via lead manager Stanley Brothers, Inc., according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs.
Briefly outline the significance of the EPS as a measure of financial performance Outline TWO (2) disclosure and presentation requirements of IAS33 The firm had 10 million common stocks in issue for the year ending December 31 2022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The firm pays tax at 30% for the year ended. Required: Calculate the Basic and diluted EPS for the year 2022 Outline the need to disclose a diluted EPS figure and on the relevance of this to the sharehol

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