On January 1, 2025, Blossom Industries had stock outstanding as follows.6% Cumulative preferred stock, $100 par value, issued and outstanding 9,700 sharesCommon stock, $10 par value, issued and outstanding 200,000 sharesDate of AcquisitionCompany A April 1, 2025Company B July 1, 2025Company C October 1, 2025To acquire the net assets of three smaller companies, Blossom authorized the issuance of an additional 157,200 common shares. Theacquisitions took place as shown below.Shares Issued48,00078,00031,200$970,000On May 14, 2025, Blossom realized a $92,400 (before taxes) gain on discontinued operations. On December 31, 2025, Blossomrecorded income of $291,600 from continuing operations.BLOSSOM INDUSTRIESIncome Statement2,000,000Assuming a 20% tax rate, compute the basic earnings per share data that should appear on the financial statements of BlossomIndustries as of December 31, 2025. (Round answers to 2 decimal places, e.g. 2.55.)$$

The Income from discontinuing operations refers to the profit or loss generated by a segment or…

Answered: On January 1, 2025, Blossom Industries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.)
For the year ended December 31, 2024, Norstar Industries reported net income of $980,000. At January 1, 2024, the company had 1,130,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 May 24 June 1 Sold 100,000 shares in a public offering Declared and distributed a 5% stock dividend Issued 114,000 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, 2024. Show computations. Numerator Denominator Earnings per Share
Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2021 (credit balances indicated by parentheses). Michael acquired all of Aaron's outstanding voting stock on January 1, 2017, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company's stock actively traded at $28.50 per share. Michael Company 12/31/21 $ (644,500) 287,250 129,300 (5,000) $ (232,950) $(1,046,000) (232,950) 90,000 $(1,188,950) 140,000 429,000 611,000 570,000 512,000 1,015,000 $3,277,000 $(988,050) (300,000) (500,000) (300,000) (1,188,950) $(3,277,000) Revenues Cost of goods sold Amortization expense Dividend income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Receivables Inventory Investment in Aaron Company Copyrights Royalty agreements Total assets Liabilities Preferred stock. Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and…
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.)
At the beginning of current year, Disgust Company purchased shares for P6,000,000. On that date, the carrying amount of the 30,000 shares of an investee's 200,000 outstanding ordinary acquired shares was P4,000,000. Problem 17-4 (IAA) u the beginning of current year, Disgust Company purchased A 000 shares of an investee's 200,000 outstanding ordinary acquired shares was P4,000,000. The entity attributed the excess of cost over carrying amount to patent with remaining useful life of 10 years. During the year, Disgust Company's officers gained a majority on the investee's board of directors. The investee reported earnings of P5,000,000 for the year and paid dividend of P3,000,000 at year-end. Required: 1. Prepare journal entries to record the transactions for the curient year. 2. Compute the investment income for the current year. 3. Compute the carrying amount of the investment at year-end. Problem 17-5 (IAA) Alpha Company acquired 20,000 shares of Beta Company on January 1, 2020 at…
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…
Kay Leni Tayo issue 50,000 of its P5 par value common stock for the net assets of AngatBuhay. AngatBuhay's trial balance at the date of acquisition shows the following: Current Assets 420,000 PPE 980,000 Liabilities 500,000 Common Stock 180,000 APIC 320,000 Retained Earnings 400,000 AngatBuhay's current assets are appraised at P550,000 and the PPE was also appraised at P1,800,000. Accordingly, Kay Leni Tayo issued common stock with the total market value equal to AngatBuhay's net assets including goodwill of P200,000. What is the market value per share of Kay Leni Tayo's share at the time of business combination?
On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,250. On December 31, 2023, Akron, Incorporated, acquires an additional 25 percent of Zip Company's outstanding common stock for $95,000. During the next two years, the following information is available for Zip Company: Year 2022 2023 2024 Income $ 82,000 94,000 Dividends Common Stock Fair Declared Value (12/31) $ 325,000 190,000 477,000 $ 7,400 14,800 At December 31, 2023, Zip reports a net book value of $294,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2023. a1. Equity income a2. Investment in Zip account b1. Reported income b2. Investment in Zip account Required: a. Assume Akron applies the equity method to its Investment in Zip account: 1. What amount of equity income should Akron report for…
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…
Carla Vista Corporation was organized on January 1, 2026 with the authorization of 1300000 shares of common stock with a par value of $6 per share. In 2026, the corporation had the following capital transactions: January 5 issued 650000 shares @ $11 per share July 28 purchased 76000 shares @ $11 per share December 31 sold the 76000 shares held in treasury @ $18 per share Carla Vista used the cost method to record the purchase and the reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2026? O $3782000. O $2558000. O $3250000. O $-0-.
Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2021 (credit balances indicated by parentheses). Michael acquired all of Aaron’s outstanding voting stock on January 1, 2017, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company’s stock actively traded at $23.50 per share. Michael Company12/31/21 Aaron Company12/31/21 Revenues $ (610,000 ) $ (370,000 ) Cost of goods sold 270,000 140,000 Amortization expense 115,000 80,000 Dividend income (5,000 ) 0 Net income $ (230,000 ) $ (150,000 ) Retained earnings, 1/1/21 $ (880,000 ) $ (490,000 ) Net income (above) (230,000 ) (150,000 ) Dividends declared 90,000 5,000 Retained earnings, 12/31/21 $ (1,020,000 ) $ (635,000 ) Cash $ 110,000 $ 15,000 Receivables 380,000 220,000 Inventory 560,000 280,000 Investment in Aaron Company 470,000…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS