I need help with accounting Morris Corporation decided to issue common stock and used the$300,000 proceeds to retire all of its outstanding bonds on January1, 2012. The following information is available for the company for2011 and 2012.Net incomeDividends declared for preferredstockholdersAverage common stockholders' equity20122011$182,000 $150,0008,000 8,0001,000,000 700,000Total assetsCurrent liabilitiesTotal liabilities1,200,000 1,200,000100,000 100,000200,000500,000Compute the return on common stockholders' equity ratio for bothyears.

Step 1: Define Common StockholdersCommon stockholders are shareholders who hold at least one share…

Answered: Morris Corporation decided to issue…

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

See similar textbooks

Similar questions

Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
Sagar
Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2020. The following information is available for the company for 2019 and 2020. Net income Average stockholder's equity Total assets Current liabilities Total liabilities Return on common stockholders' equity В / у T, T I. Show Transcribed Text Debt to assets ratio 2020 30% $120,000 40% 100,000 1,000,000 1,200,000 1,200,000 360,000 Given below is the debt to assets ratio for both the years. 2020 2019 12.5% 2019 Explain how it is possible that net income increased, but the return on common stockholders' equity decreased. $100,000 800,000 100,000 480,000 12.0% J E H 3 C EEE MT 1 Comment on the implications that the change in the debt to assets ratio would have on the company's solvency.
Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its outstanding bonds on January 1, 2022. The following information is available for the company for 2022 and 2021. Net income Dividends declared for preferred stockholders Average common stockholders' equity Total assets Current liabilities Total liabilities (a) Return on common stockholders' equity ratio (c1) 2022 2022 Debt to assets ratio $ 182,000 8,000 1,000,000. 1,200,000 100,000 200,000 2021 $ 150,000 8,000 700,000 Compute the return on common stockholders' equity for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 1,200,000 100,000 500,000 enter return on common stockholders equity in percentages % Compute the debt to assets ratio for both years. (Round answers to 1 decimal place, e.g. 12.5%.) 2021 2022 2021 enter debt to assets ratio in percentages % enter return on common stockho enter debt to assets ratio in percentages %
Jakarta Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January 1, 2021. The following information is available for the company for 2020 and 2021. 2021 2020 Net income $120,000 $100,000 Average stockholders' equity 1,000,000 800,000 Total assets 1,200,000 1,200,000 Current liabilities 100,000 100,000 Total liabilities 360,000 480,000 Instructions(1) Compute the return on common stockholders' equity for both years.(2) Explain how it is possible that net income increased, but the return on common stockholders' equity decreased.(3) Compute the debt to assets ratio for both years, and comment on the implications of this change in the company's solvency.
Jaybu Company acquired the following portfolio of equity instruments held for trading during 2022 and reported the following balances at December 31, 2022. No sales occurred during 2022. Security / Cost / Market Value, 12/31/22 AAA Company Shares / 300,000 / 350,000 BBB Company Shares / 450,000 / 410,000 CCC Company Shares / 540,000 / 640,000 DDD Company Shares / 610,000 / 650,000 How much is the unrealized gain that should be taken to profit or loss statement?
Dakota Corporation had the following shareholders’ equity account balances at December 31, 2018: Preferred Stock $1,800,00 Additional Paid - in capital on preferred stock 90000 Common Stock 5,150,000 Additional paid in capital on common stock 3500000 Retained Earnings 4000000 Unrealized decrease in value of marketable equity securities 245000 Treasury common stock 270000 Transactions during 2019 and other information relating to the shareholders’ equityaccounts were as follows:1. Dakota’s preferred and common shares are traded on the over-the-counter market. At December 31, 2018, Dakota had 100,000 authorized shares of $100 par, 10%, cumulative preferred stock; and 3,000,000 authorized shares of no-parcommon stock with a stared value of $5 per share.2. On January 9, 2019, Dakota formally retired all 30,000 shares of its treasurycommon stock and had them revert to an unissued basis. The treasury stock hadbeen acquired on January 20, 2018. The shares were…
Commons, Inc. provides the following information for 2018: Net income $ 38 comma 000$38,000 Market price per share of common stock $ 18.00$18.00/share Dividends paid $ 0.85$0.85/share Common stock outstanding at Jan. 1, 2018 120 comma 000120,000 shares Common stock outstanding at Dec. 31, 2018 170 comma 000170,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.) A. 4.964.96% B. 3.283.28% C. 4.724.72% D. 1.441.44%
Oriole Company issues $270,000, 20-year. 10% bonds at 102. Prepare a tabular summary to record the sale of these bonds on June 1, 2022. Include margin explanations for the changes in revenues and expenses. Of a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Cash eTextbook and Media Bonds Pay Liabilities Prem. on Bonds Pay Common Stock Revenue Stockholders' Equity Expense Ret
Please help me
At the end of the accounting year, December 31, 2007, Emme’s records reflected the following: (Compute for the total stockholders' equity) A. 120,000 B. 121,000 C. 125,000

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS