Long-term debt Notes payable, 14% 8% convertible bonds payable 10% convertible bonds payable Total long-term debt WEBSTER CORPORATION BALANCE SHEET (PARTIAL) AT DECEMBER 31, 2022 Stockholder' equity 10% cumulative, convertible, preferred stock, par value $100, 100,000 shares authorized, 25,000 shares issued and outstanding Common stock, par value $1, 5,000,000 shares authorized, 500,000 shares issued and outstanding Additional Paid-in capital Retained earnings Total stockholders' equity $ 1,000,000 2,500,000 2.500,000 $6.000.000 7. Net income was $1,750,000 in 2022. 8. No bonds or preferred stock were converted during 2022. $ 2,500,000 500,000 2,000,000 9,000,000 $14.000.000 Notes and Assumptions December 31, 2022 1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per share. The average market price of Webster's common stock during 2022 was $30 per share. All options are still outstanding at the end of 2022. 2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each convertible bond is convertible into 40 shares of common stock. (Each bond has a face value of $1,000.) 3. The 10% cumulative, convertible preferred stock was issued at the beginning of 2022 at par. Each share of preferred is convertible into four shares of common stock. 4. The average income tax rate is 40%. 5. The 500,000 shares of common stock were outstanding during the entire year. 6. Preferred dividends were not declared in 2022. Required: Using the information above, compute Basic EPS and Diluted EPS for Webster Corporation for 2022.

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.

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.

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