On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally sold for $25 per share, and 5,000 shares of 10% cumulative preferred stock ($100 par), convertible into 50,000 common shares. On October 1, 2018, Tonge sold and issued an additional 12,000 shares of common stock at $37. At December 31, 2018, there were 22,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44. Net income was $840,000. The tax rate for the year was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.) Basic Diluted S Numerator Answer is complete but not entirely correct. 790,000 840,000 Denominator 703,000 754,784 $ Earnings per share 1.12 1.11

On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally sold for $25 per share, and 5,000 shares of 10% cumulative preferred stock ($100 par), convertible into 50,000 common shares. On October 1, 2018, Tonge sold and issued an additional 12,000 shares of common stock at $37. At December 31, 2018, there were 22,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44. Net income was $840,000. The tax rate for the year was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.) Basic Diluted S Numerator Answer is complete but not entirely correct. 790,000 840,000 Denominator 703,000 754,784 $ Earnings per share 1.12 1.11

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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In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.Required:Prepare the appropriate journal entry for each of the following transactions:1. On January 23, 2018, Western Transport reacquired 10 million shares at $20 per share.2. On September 3, 2018, Western Transport sold 1 million treasury shares at $21 per share.3. On November 4, 2018, Western Transport sold 1 million treasury shares at $18 per share.
At the beginning of 2023, Barnes & Noble had 240,000 shares of $5 par value common stock outstanding. On August 1, Barnes & Noble issued another 120,000 shares. The Company’s 2023 Net Income was $524,000. In addition, you are given the following portion of Barnes & Noble’s 12/31/2023 Stockholders’ Equity section of its Balance Sheet: Preferred Stock ( 4%, $10 par, 72,000 shares issued and outstanding) $720,000 Calculate Barnes & Noble’s Earnings per Share for 2023 (round to the nearest cent). Select one: a. $1.38 b. $2.06 c. $1.71 d. $1.46 e. $1.81 PreviousSave AnswersFinish attempt ...
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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…
Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100 shares of preferred stock and 1,800 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 1,800 additional shares of common stock for $17 per share. Issue 200 additional shares of preferred stock for $28 per share. April 1 June 1 Declare a cash dividend on both common and preferred stock of $0.60 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 200 shares of common treasury stock for $14 per share. October 1 Resell 100 shares of treasury stock purchased on August 1 for $16 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,000; Common Stock, $1,800; Additional Paid-in Capital, $18,300; and Retained Earnings, $10,300. Net income for the year…
On December 31, 2020, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $550,000 and $84,000 to common and preferred shareholders, respectively, on December 15, 2021.On February 28, 2021, 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, 2021, was $2,850,000. The income tax rate is 25%.Required:Compute Dow's earnings per share for the year ended December 31, 2021.
On January 1, 2018, Tonge Industries had outstanding 800,000 common shares ($1 par) that originally sold for $20 per share, and 3,000 shares of 10% cumulative preferred stock ($100 par), convertible into 30,000 common shares. On October 1, 2018, Tonge sold and issued an additional 20,000 shares of common stock at $36. At December 31, 2018, there were 28,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 28,000 shares of common stock at an exercise price of $30. The market price of the common stock at year-end was $48. During the year, the price of the common shares had averaged $40. Net income was $940,000. The tax rate for the year was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.) Basic Diluted Numerator 1 1 1 Denominator = Earnings per share =
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On January 1, 2020, Urban Inc. issued 10,000 shares of $1 par common stock for $10 per share. On June 30, 2020, Urban Inc. reacquired 1,000 shares of common stock at $8 per share. On December 15, 2020, Urban Inc. reissued 500 shares of common stock at $12 per share. Assume that Urban accounts for repurchases of its common stock as direct stock retirements. The entry on June 30, 2020, to account for the direct stock retirement would include a Credit to Paid-in Capital in Excess of Par-Common Stock for $2,000. Credit to Retained Earnings for $2,000. Debit to Paid-in Capital in Excess of Par-Common Stock for $9,000. Debit to Retained Earnings for $9,000.
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