On December 31, 2015, Dow Steel Corporation had 620,000 shares ofcommon stock and 32,000 shares of 10%, noncumulative, nonconvertiblepreferred stock issued and outstanding. Dow issued a 5% common stockdividend on May 15 and paid cash dividends of $420,000 and $71,000 tocommon and preferred shareholders, respectively, on December 15,2016.On February 28, 2016, Dow sold 64,000 common shares. In keeping withits long-term share repurchase plan, 4,000 shares were retired on July 1.Dow's net income for the year ended December 31, 2016, was$2,200,000. The income tax rate is 40%.Compute Dow's earnings per share for the year ended December 31,2016.

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Answered: On December 31, 2015, Dow Steel…

Financial Accounting

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Chapter15: Investments And Fair Value Accounting

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Problem 28E

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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. 3,370,000
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). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.
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.
On December 31, 2015, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stockdividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders,respectively, on December 15, 2016.On February 28, 2016, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan,2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2016, was $2,100,000.The income tax rate is 40%.Required:Compute Dow’s earnings per share for the year ended December 31, 2016.
On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%,noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividendon May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018.On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan,2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000.The income tax rate is 40%.Required:Compute Dow’s earnings per share for the year ended December 31, 2018
On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000. The income tax rate is 40%. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2019, if Merrill’s 2019 net income is at least $500,000. In 2018, Merrill’s net income was $630,000. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at…
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BARK Corporation acquired 10,000 Company shares on February 5, 2016 at P50 which include P10 per share broker's fees and commissions, A P50,000 cash dividends were received from MEOW Company on March 20, 2016. These dividends were declared on January 5 payable to shareholders as of February 10. MEOW Company shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2016. The investments were designated as FVPL How much is initial carrying value of investment on the date of acquisition?
On January 15, 2014, King International’s board of directors declared a 3-for-1 stock split of its $12 per value common stock, of which 3,200,000 shares were authorized and 800,000 were issued and outstanding. The market value on that date was $45 per share. On the same date, the balance of additional paid-in capital was $16,000,000, and the balance of retained earnings was $32,000,000. Prepare the stockholders’ equitysection of King’s company’s balance sheet before and after the stock split. What entry, if any, is needed to record the stock split?
On December 31, 2023, Dow Steel Corporation had 730,000 shares of common stock and 43,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. • Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $530,000 and $82,000 to common and preferred shareholders, respectively, on December 15, 2024. . On February 28, 2024, Dow sold 60,000 common shares. • In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. • Dow's net income for the year ended December 31, 2024, was $2,750,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary shares of $10 par value outstanding at December 31, 2017. InstructionsAnswer the questions in each of the following independent situations.(a) If the preference shares are cumulative and dividends were last paid on the preference shares on December 31, 2014, what are the dividends in arrears that should be reported on the December 31, 2017, statement of financial position? How should these dividends be reported?(b) If the preference shares are convertible into seven shares of $10 par value ordinary shares and 3,000 shares are converted, what entry is required for the conversion, assuming the preference shares were issued at par value?(c) If the preference shares were issued at $107 per share, how should the preference shares be reported in the equity section?
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Jackson sold 6,000 of the treasury shares on September 30, 2018, for $47 per share. Net income for 2018 was $180,905. Also outstanding at December 31, 2017, were fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40. These stock options were exercised on November 1, 2018. The market price of the common shares averaged $50 during 2018. What is Jackson's diluted earnings per share (rounded to 2 decimal places) for 2018?

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