Number 1. On January 1, 2021, when a company's shares were selling in the market for $ 50 per share, the company granted 100,000 restricted shares to various executives. The restriction would be lifted on December 31, 2025. At the beginning of 2024, 10% of executives resigned from the company. REQUIRED: 1. Prepare the wage entries for the dates of January 1, 2021 and December 31, 2023. 2. Prepare the wage entries for December 31, 2024 and 2025. Number 2. Use the information provided to calculate the weighted average number of common shares outstanding for 2020 diluted earnings per share purposes. • 24,000 common shares outstanding on January 1, 2020. • 10,000 convertible preferred shares outstanding on January 1, 2020. Each preferred share can be converted to 12 common shares. • 12,000 common shares issued on March 1, 2020 • 5,000 preferred shares were converted to common shares on May 31, 2020. • 18,000 common shares were issued on September 1, 2020. • A 1: 2 reverse split took place on November 15, 2020. • 6,000 portfolio shares were purchased on December 1, 2020. • 51,000 shares outstanding as of December 31, 2020. Number 3. Use the information provided to calculate basic and diluted earnings per share for the year 2020. • Net income for the year 2020 = $ 240,000 • Weighted average of common shares outstanding for 2020 = 30,000 • Cumulative preferred stock dividend = $ 60,000 per year. In 2020 the company did not declare dividends. • Bonds payable, convertible. Issued in 2016. They can be converted from the year 2022. They are convertible to a total of 15,000 common shares. The interest expense on the bonds in 2020 was $ 60,000. • The effective income tax rate for 2020 = 25%.
Number 1. On January 1, 2021, when a company's shares were selling in the market for $ 50 per share, the company granted 100,000 restricted shares to various executives. The restriction would be lifted on December 31, 2025. At the beginning of 2024, 10% of executives resigned from the company.
REQUIRED:
1. Prepare the wage entries for the dates of January 1, 2021 and December 31, 2023.
2. Prepare the wage entries for December 31, 2024 and 2025.
Number 2. Use the information provided to calculate the weighted average number of common shares outstanding for 2020 diluted earnings per share purposes.
• 24,000 common shares outstanding on January 1, 2020.
• 10,000 convertible preferred shares outstanding on January 1, 2020. Each
• 12,000 common shares issued on March 1, 2020
• 5,000 preferred shares were converted to common shares on May 31, 2020.
• 18,000 common shares were issued on September 1, 2020.
• A 1: 2 reverse split took place on November 15, 2020.
• 6,000 portfolio shares were purchased on December 1, 2020.
• 51,000 shares outstanding as of December 31, 2020.
Number 3. Use the information provided to calculate basic and diluted earnings per share for the year 2020.
• Net income for the year 2020 = $ 240,000
• Weighted average of common shares outstanding for 2020 = 30,000
• Cumulative preferred stock dividend = $ 60,000 per year. In 2020 the company did not declare dividends.
• Bonds payable, convertible. Issued in 2016. They can be converted from the year 2022. They are convertible to a total of 15,000 common shares. The interest expense on the bonds in 2020 was $ 60,000.
• The effective income tax rate for 2020 = 25%.
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