Information concerning the capital structure of Catan Corporation followsDec. 31, 2019Dec. 31, 2020100,000 shares100,000 shares10,000 shares$ 2,000,000Common shares outstandingConvertible preferred shares outstanding9% convertible bonds10,000 sharesSelect one:a. $ 3.65b. $ 4.75c. $ 3.33d. $ 5.00$ 2,000,000During 2020, Catan paid dividends of $ 1.00 per common share and $2.50 per preferred share. The preferred shares are non-cumulative, and convertible into 20,000 commonshares. The 9% convertible bonds are convertible into 50,000 common shares. Net income for calendar 2020 was $500,000. Assume the income tax rate is 30%. Basic earnings pershare for 2020 is

Basic Earnings Per Share (EPS) is a financial metric that represents the portion of a company's…

Answered: Information concerning the capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please find basic earnings per share and diluted earnings per share
At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 million face amount, convertible into 60 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 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and end of 2021. The average market price of Canaday's common stock was $20 per share during 2021. • Canaday's net income for the year ended December 31, 2021, was $2,366 million. The effective income tax rate was 25%. Required: 1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2021. (Round "Earnings per share" answers to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)…
Prepare the Statement of Shareholders’ Equity for ABC CORPORATION for the year ended December 31, 2020, using the following information: January 1, 2020 balances § 15% Preference Share Capital, P100 par value, authorized 25,000 shares, 6,000 shares issued, of which 250 shares are in treasury P600,000 § Ordinary Share Capital, P50 par value, authorized 40,000 shares, 9,000 shares issued 450,000 § Reserves 45,000 § Accumulated profits (includes appropriation for cost treasury shares, P25,500) 400,000 Summary of transactions during the year: § Appropriated for Plant Expansion P 90,000 § Appropriated for Treasury Shares 56,680 § Cash Dividend Declared 200,000 § Issued 15% Preference Share Capital 280,000 § Issued Ordinary Share Capital 230,000 § Net Income for the period 450,000 § Share premium-Donated Shares 5,250 § Share premium – Ordinary 7,000 §…
Eastern Corporation began operations on January 1st, 2020. The company reported the following information on its balance sheet as of December 31st, 2020: Liabilities Convertible bonds payable, $7,500,000, 5%, matures on Dec 31, 2025: $7,184,073 (See Note 1 below) Equity Common shares (unlimited authorized, 9,000,000 issued and outstanding). $18,000,000 Class A Preferred shares, cumulative $7 annual dividend, convertible to common shares at 4 common shares for each preferred share (400,000 authorized, 80,000 issued and outstanding) $3,000,000 Class B Preferred shares, non-cumulative $15 annual dividend, convertible to common shares at 2 common shares for each preferred share (4,000,000 authorized, 100,000 issued and outstanding) $750,000 Contributed surplus, common stock warrants for the purchase of common shares for $12 per share at any date before December 31st,…
1. Pamela Company showed the following accounts on December 31, 2020. Bonds Payable 5,000,000 Premium on Bonds Payable 250,000 Share capital- 250,000 shares authorized and 200,000 shares issued, P50 par 10,000,000 Share premium- issuance 2,000,000 Share premium-conversion privilege 500,000 Retained earnings 2,500,000 The bonds are convertible into 10 shares of capital for every P 1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P 200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020
The information below pertains to Pierpont Corp. for 2020: Net income, $1,200,000. Common Stock, $10 par value per share, total par value $3,000,000. D% Convertible and Cumulative Preferred Stock, S100 par value per share, each share convertible into 3 shares of common stock. The preferred stock was issued in 2018. Total par value $4,000,000. 7% Convertible Bonds Payable, issued at face value of $1,000 per bond, in 2019. Each bond is convertible into 30 shares on common stock. Total face value $2,000,000. Stock options granted in 2019 to purchase 75,000 shares of common stock at $20 per share, none of which have been exercised to date. Income tax rate, 20%. Average market price of the common stock during 2020 was $25 per share. There were no changes during 2020 in the number of common shares outstanding, number of preferred shares outstanding, or number of convertible bonds outstanding. There are no treasury shares held by Pierpont. REQUIRED: 1. Calculate basic earnings per share for…
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Information from the financial statemets of Henderson-Niles Industries included the following at December 31, 2021: 12 Comnon shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) 100 million 60 million $900 million Henderson-Niles's net income for the year ended December 31, 2021, is $520 million. The income tax rate is 25%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2021. 01:54:48 Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answers to 2 decimal places.) Numerator Denominator Earnings per share Basic Diluted I ||| |
Calculating EPS: Simple Capital Structure On December 31, 2019, Americana Inc. had 525,000 shares of common stock issued and outstanding. Americana Inc. issued a 40% stock dividend on July 1, 2020. On October 1, 2020, the company purchased 60,000 shares of its common stock for the treasury, and declared a 2-for-1 stock split on December 31, 2020. American also had 30,000 shares of 5%, $20 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or the common stock in 2019 or 2020. Net income for 2020 was $5,000,000. Required a. Compute the required EPS amount. Net Income Available toCommon Stockholders Weighted Avg. CommonShares Outstanding PerShare Basic EPS Answer Answer Answer b. Compute the required EPS amount assuming instead that Americana Inc. declared and paid the current year preferred dividend and one year of dividends in arrears in December 2020. Net Income Available toCommon Stockholders Weighted Avg.…
Information from the financial statements of Ames Fabricators, Inc., included the following:   December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into 64,000 shares of common) 24,000 24,000 8% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2021, is $700,000. 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.
Jones Corporation’s capital structure follows. December 31 2020 Outstanding shares of stock      Common stock, outstanding shares 110,000      Convertible preferred stock, outstanding shares     10,000 8% Convertible bonds $1,000,000 During 2020, Jones declared and paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock. The 8% bonds are convertible into 30,000 shares of common stock. Net income for 2020 is $850,000. Assume that the income tax rate is 25%. a) Compute basic EPS for 2020. b) Compute diluted EPS for 2020. c) Prepare the bottom of the company’s income statement in proper form, beginning with the net income.
The table below shows a partial view of Webster Corporation's balancesheet. Webster CorporationBalance Sheet (partial)At December 31, 2021 Long-term debt Notes payable 10% $2,000,00010% convertible bonds payable 2,500,00012% convertible bonds payable 3,000,000Total long-term debt $7,500,000 Stockholders' equity 6% cumulative, convertiblepreferred stock, $100 par, 50,000shares outstanding. 5,000,000 Common stock, $1 par, 600,000shares outstanding.   600,000Additional paid-in capital 2,500,000 Retained earnings 8,500,000Total stockholders' equity $16,600,000 Notes and Assumptions December 31, 20211. Options were granted in December 2020 to purchase 25,000 shares of common stock at $25 per share. The average market price of common stock during 2021 was $35 per share. All options are still outstanding atthe end of 2021 2. Both the 10 percent and 12 percent convertible bonds were issued in2020 at face value. Each convertible bond is convertible into 50 shares of common stock.…

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