NOT A GRADED ASSIGNMENT On January 1, 2023, Cullumber Limited had shares outstanding as follows:5% cumulative preferred shares, $100 par value, 10,000 shares issued and outstandingCommon shares, 201,000 shares issued and outstandingTo acquire the net assets of three smaller companies, the company authorized the issuance of an additional 306,000 common shares.The acquisitions were as follows:Date of AcquisitionCompany A: April 1, 2023Company B: July 1, 2023Company C: October 1, 2023$1,000,0002,010,000Shares Issued164,00083,00059,000On May 14, 2023, Cullumber realized a $99,000 gain (before tax) on a discontinued operation from a business segment that hadoriginally been purchased in 2003.On December 31, 2023, the company recorded income of $685,000 before tax, not including the discontinued operation gain.Cullumber has a 30% tax rate.C. Assume that Cullumber declared a 1-for-2 reverse stock split on February 10, 2024, and that thecompany's financial statements for the year ended December 31, 2023, were issued on February28, 2024.D. Calculate earnings per share for 2023 as it should be reported to shareholdersIncome before gain from discontinued operationsDiscontinued operations gain net of taxNet income

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

Answered: On January 1, 2023, Cullumber Limited…

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, 2025, Blossom Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,700 shares Common stock, $10 par value, issued and outstanding 200,000 shares Date of Acquisition Company A April 1, 2025 Company B July 1, 2025 Company C October 1, 2025 To acquire the net assets of three smaller companies, Blossom authorized the issuance of an additional 157,200 common shares. The acquisitions took place as shown below. Shares Issued 48,000 78,000 31,200 $970,000 On May 14, 2025, Blossom realized a $92,400 (before taxes) gain on discontinued operations. On December 31, 2025, Blossom recorded income of $291,600 from continuing operations. BLOSSOM INDUSTRIES Income Statement 2,000,000 Assuming a 20% tax rate, compute the basic earnings per share data that should appear on the financial statements of Blossom Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.) $ $
NOT A GRADED ASSIGNMENT
On January 1, 2025, Pharoah Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 10,300 shares $1,030,000 Common stock, $10 par value, issued and outstanding 188,000 shares 1,880,000 To acquire the net assets of three smaller companies, Pharoah authorized the issuance of an additional 162,000 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2025 50,400 Company B July 1, 2025 80, 400 Company C October 1, 2025 31, 200 On May 14, 2025, Pharoah realized a $88,800 (before taxes) gain on discontinued operations. On December 31, 2025, Pharoah recorded income of $285, 600 from continuing operations. Assuming a 20% tax rate, compute the basic earnings per share data that should appear on the financial statements of Pharoah Industries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.)
On January 1, 2020, Splish Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,600 shares $960,000 Common stock, $10 par value, issued and outstanding 181,000 shares 1,810,000 To acquire the net assets of three smaller companies, Splish authorized the issuance of an additional 159,600 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 49,200 Company B July 1, 2020 79,200 Company C October 1, 2020 31,200 On May 14, 2020, Splish realized a $90,000 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Splish recorded income of $312,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Splish Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.) Splish Industries Income…
On January 1, 2020, Metlock Industries had stock outstanding as follows. 6% Cumulative preferred stock, $ 100 par value, issued and outstanding 10,800 shares $ 1,080,000 Common stock, $ 10 par value, issued and outstanding 194,000 shares 1,940,000 To acquire the net assets of three smaller companies, Metlock authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 51,600 Company B July 1, 2020 78,000 Company C October 1, 2020 31,200 On May 14, 2020, Metlock realized a $ 91,200 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Metlock recorded income of $ 330,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Metlock Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)…
On January 1, 2025, Teal Industries had stock outstanding as follows: 8% Noncumulative preferred stock, $100 par value, issued and outstanding 242,000 shares Common stock, $1 par value, issued and outstanding 621,000 shares Date of Acquisition MicroBio February 1, 2025 BioTech June 1, 2025 To acquire the net assets of three smaller companies, Teal issued an additional 591,000 common shares. The acquisitions took place as follows. SuperBio November 1, 2025 Shares Issued 213,000 Earnings per share $ 84,000 $24,200,000 294,000 621,000 On December 31, 2025, Teal reported net income of $9,349,000 before taxes. No dividends on the common or preferred stock were declared during 2025. Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Teal Industries as of December 31, 2025. (Round answer to 2 decimal places, e.g. 2.55.)
On January 1, 2019, Bailey Industries had shares outstanding as follows.6% cumulative preference shares, €100 par value, issued and outstanding 10,000 shares €1,000,000Ordinary shares €10 par value, issued and outstanding 200,000 shares 2,000,000To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 170,000 ordinary shares. The acquisitions took place as shown below.Date of Acquisition Shares IssuedCompany A: April 1, 2019, 60,000Company B: July 1, 2019, 80,000Company C: October 1, 2019 30,000On May 14, 2019, Bailey realized a €90,000 (before taxes) gain from discontinued operations. On December 31, 2019, Bailey recorded net income of €300,000 before tax and exclusive of the gain.InstructionsAssuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2019
owe subject-Accounting
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. Stellar IndustriesIncome Statement…
On January 1, 2020, Stellar Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,300 shares $930,000 Common stock, $10 par value, issued and outstanding 220,000 shares 2,200,000 To acquire the net assets of three smaller companies, Stellar authorized the issuance of an additional 160,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 82,800 Company C October 1, 2020 30,000 On May 14, 2020, Stellar realized a $93,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Stellar recorded income of $282,000 from continuing operations (after tax).Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Stellar Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. $2.55.)
LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by payingcash. The consolidated statement of financial position showed the following balances at thedate of acquisition.Consolidated Balances AmountTotal Assets 15,670,000Total Liabilities 4,575,000Total Shareholder’s Equity ?The book value of the net assets of NS Services Center is P4,500,000. The assets of NS ServiceCenter are fairly valued except for the following:• Patent on the product that is deemed worthless, P50,000.• Goodwill of P150,000.• Unrecognized identifiable R&D of P75,000.The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equitybalance is P9,500,000.On December 31, 2022 the following information were provided by NS Services Center:• Net income of 400,000 was recognized.• Patents remaining useful life is 4 years.• Pre-existing goodwill presented above was impaired with a current value of 120,000.• Dividends were declared amounting to P100,000.LGM…
On January 1, 2020, Vaughn Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,200 shares $920,000 Common stock, $10 par value, issued and issued and outstanding 205,000 shares To acquire the net assets of three smaller companies, Vaughn authorized the issuance of an additional 162,000 common shares. The acquisition took place as shown below. Company A April 1, 2020. 51,600 shares issued Company B July 1, 2020. 80,400 shares issued Company C October 1, 2020. 30,000 shares issued On May 14, 2020, Vaughn realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Vaughn recorded income of $303,600 from continuing operations (after tax). Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Vaughn Industries as of December 31, 2020 (Round answer to 2 decimal places)

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