In 2024, Crane, Inc. issued 97000 shares of $100 par value convertible preferred stock stock can be converted into three shares of Crane's $20 par value common stock at the option of the preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $25 per share. What amount will be credited to additional paid-in capital from common stock as a result of the conversion? O $3880000 O $3007000 O $2619000 O $4074000
Q: aum Corporation uses the weighted-average department for the most recent month are listed below:…
A: Process costing is used to record cost of various stages of production. Where finished goods of one…
Q: Required information [The following information applies to the questions displayed below.] Golden…
A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit…
A: Selling and expenses budget in which all the expenses related to selling a product are shown. Ex:…
Q: a. Prepare a cash receipts schedule for November and December. Prince Charles Island Company Cash…
A: a.Prince Charles Island companyCash receipts…
Q: Munoz Manufacturing Company has an opportunity to purchase some technologically advanced equipment…
A: Introduction:Internal rate of return (IRR ) of a project is the discount rate which makes net…
Q: The 2013 Income Statement and other selected financial information for Company A, as well as…
A: Free cash flow (FCF) is a financial term that measures a company's operating cash flow after…
Q: Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information.…
A: As posted multiple sub parts we are answering only the first three sub parts Kindly repost the…
Q: The following information is for the month ending July 31, 2020. June 30, 2020, cash balance…
A: Cash budget is prepared based on all the esitimated cash movement in a specific period to manage…
Q: Pharoah Corporation has the following cost records for the year ended December 31, 2022: Indirect…
A: Pharoah Corporation Cost of Goods Manufactured Statement Direct materials used $252,400 Direct…
Q: Salmone Company reported the following purchases and sales of its only product. Salmone uses a…
A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: To determine the financial advantage (disadvantage) of discontinuing the Linens department, firstly…
Q: gerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products…
A: Activity Rate is the rate used to allocate manufacturing overhead cost under activity based costing…
Q: Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the…
A: Given in the question 2023 2024 2025 Costs incurred to date $920,625…
Q: The Mexican Peso is quoted at .0482-.0485 US$/Peso spot. 6-month forward contracts are quoted…
A: Arbitrage is the risk free opportunity available which can be done through buying and selling in two…
Q: Required information [The following information applies to the questions displayed below] Carlberg…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Ivanhoe Company is considering three long-term capital investment proposals. Each investment has a…
A: Net present value and the annual rate of return are the modern methods of capital budgeting that are…
Q: EXERCISE 5 The following information is available for the ABC Co. for the month of January. All…
A: The FIFO method is generally accepted under Generally Accepted Accounting Principles (GAAP) and is…
Q: 5. Refer to the original data. By automating, the company could slash its variable expenses in half.…
A: Contribution Margin: It is the difference between the sales and the Variable Cost of the…
Q: Required: Prepare a statement of cash flows for 2023 that reports the cash inflows and outflows from…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: inventory 42000 long term debt 62500 common stock 30000 accounts payable 220000 cash 66000 buildings…
A: Current assets are short-term assets of a company. These can be converted into cash within a year.…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Cost of goods manufactured is the total cost incurred in the manufacture of goods. The manufacturing…
Q: Windward Chemicals produces a product using a process that allows for substitution between two…
A: Standard costing is one of the methods of costing which focuses on measuring the performance of the…
Q: 1 Jasper Company has 61% of its sales on credit and 39% for cash. All credit sales are collected in…
A: Cash receipts refers to cash inflow. All cash sale is to be recorded in the month of sale and all…
Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…
A: The income statement can be prepared using various methods as variable and absorption costing. Using…
Q: Drake Manufacturing has the following budgeted data for its two production departments. Assembly…
A: Single plant wide overhead rate is a single rate determined to allocate overhead. It is also known…
Q: The budget committee of Crane Company collects the following data for its San Miguel Store in…
A: The cost of goods sold includes the cost of goods that are sold during the period. The net income is…
Q: Carla Vista Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign,…
A: Lets understand the basics.Operating income is a income derived from a business operation. It is…
Q: Budgeted Income Statement Pendleton Company, a merchandising company, is developing its master…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Brief Exercise 5-12 Riverbed Beverage Company reported the following items in the most recent year.…
A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…
Q: STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Non-current assets Land and buildings…
A: Cash Flow Statement It is the statement shows the flow of cash and cash equivalent in three…
Q: Xaric Industries operates two support departments, Personnel and Accounting, and two producing…
A: Methods of cost allocationThere are various methods of allocating the cost of the service divisions…
Q: EXERCISE 7-10 Sales and Production Budgets [LO2, LO3] The marketing department of Graber Corporation…
A: Cash budget means the statement which shows the expected cash available for distribution including…
Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as…
A: Lets understand the basics.There are various methods are followed for inventory valuation which…
Q: ear 1 n. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a…
A: Answer:- 1. Straight line depreciation = (Cost of asset - Salvage value) / Number of useful life
Q: Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that…
A: The inventory can be valued using various emthods as FIFO, LIFO and average method. The ending…
Q: Victory Company uses weighted average process costing. The company has two production processes.…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Prepare an income statement for China Tea Company for the year ended December 31, 2021:
A: Income statement shows company's income and expenses over a period of time.Revenues, Expenses, and…
Q: Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile,…
A: Process Costing - It is the method of costing which is used wherein the product is completed through…
Q: Linzee Liners estimates that its manufacturing overhead will be $1,768,700 in Year 1. It further…
A: To allocate the over- or under applied overhead, we first need to calculate the predetermined…
Q: egment Income (Loss) -osta on margin " (@ $ 1,129,000 994,000 135,000 239,000 $ (104,000) S
A: Avoidable fixed cost = $155,350 Loss of contribution margin = $135,000 Financial advantage…
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.
- Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.