On February 28, 2022, Scrooge Inc. split its common shares 3 for 1, and Cratchit Inc. issued a 5% stock dividend. Scrooge Inc. issued their December 31, 2021 financial statements on February 19, 2022 while Cratchit Inc. issued its December 31, 2021 financial statements on March 10, 2022. Would the transaction each company entered into after their year-end affect the computation of their earnings per share for December 31, 2021?

On February 28, 2022, Scrooge Inc. split its common shares 3 for 1, and Cratchit Inc. issued a 5% stock dividend. Scrooge Inc. issued their December 31, 2021 financial statements on February 19, 2022 while Cratchit Inc. issued its December 31, 2021 financial statements on March 10, 2022. Would the transaction each company entered into after their year-end affect the computation of their earnings per share for December 31, 2021?

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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On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million ordinary shares with a par value of $1.60 each. The company also had a retained earnings balance of $121.6 million, a revaluation reserve balance of $5.9 million, and a share premium balance of $16.4 million. On May 1, 2021, the entity made a two for three bonus issue of shares, sparing retained earnings as much as possible. The entity reported profit after tax of $17.5 million for 2020 and $24.1 million for 2021. Required: o Prepare the relevant journal entries to record the bonus issue of shares. o Determine the EPS for 2021. o Determine the original and restated EPS for 2020.
For the year ended December 31, 2021, Norstar Industries reported net income of $975,000. At January 1, 2021, the company had 1,110,000 common shares outstanding. The following changes in the number of shares occurred during 2021: Apr. 30 Sold 95,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 108,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.) Numerator / Denominator $ 975,000/ Earnings per Share =
answer the following questions?
The following transactions occurred for Rothman Corp. during 2024, its first quarter of operations (fiscal year ending Dec. 31): 1. 2. On Oct. 5, Rothman issued 2000 shares of $10 par common stock in an IPO and 400 shares of $40 par preferred stock for a lump sum of $85,000 cash. The values of the common and preferred stock were appraised separately at $30 and $50 per share, respectively. On Oct. 20, Rothman declared an 80% common stock dividend, when the market value per share of the common stock was $32. 3. On Dec. 5, the common stock dividend was issued. 4. On Dec. 20, a 3-for-1 stock split occurred for common stock. 5. On Dec. 30, Rothman purchased 100 shares of its own common stock for $14 per share. Instructions: A. Prepare the general journal entries to record each of the above transactions. B. Determine the number of common shares (1) issued and (2) outstanding at Dec. 31, 2024.
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Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 105,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,000; 2022, $13,900; and 2023, $27,000.
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