On June 1, 2023, Blossom Company and Blue Company merged to form Kingbird Inc. A total of 808,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 568,000 shares of stock for cash. All 1,376,000 shares were outstanding on December 31, 2025. Kingbird Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Kingbird Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,547,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. 2. Basic earnings per share N Diluted earnings per share 1. Basic earnings per share 2. b. The earnings figures to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) Diluted earnings per share $ shares $ shares

On June 1, 2023, Blossom Company and Blue Company merged to form Kingbird Inc. A total of 808,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 568,000 shares of stock for cash. All 1,376,000 shares were outstanding on December 31, 2025. Kingbird Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Kingbird Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,547,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. 2. Basic earnings per share N Diluted earnings per share 1. Basic earnings per share 2. b. The earnings figures to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) Diluted earnings per share $ shares $ shares

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 June 1, 2023, Novak Company and Splish Company merged to form Blossom Inc. A total of 877,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 652,000 shares of stock for cash. All 1,529,000 shares were outstanding on December 31, 2025. Blossom Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Blossom Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,444,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. 2. 1. Basic earnings per share 2. Diluted earnings per share Basic earnings per share b.…
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Flint's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issuance of an unlimited number of common shares and 70,000 preferred shares with a $2 dividend. At the beginning of the December 31, 2020 year, the opening account balances indicated that 30,000 common shares had been issued for $5 per share, and no preferred shares had been issued. Opening retained earnings were $311,000. The transactions during the year were as follows: Jan. 15 Issued 12,000 common shares at $6 per share. Feb. 12 Issued 2,300 preferred shares at $56 per share. Sept. 2 Issued 5,000 common shares in exchange for land valued at $30,000. Oct. 31 Declared and paid a dividend on preferred shares of $2 per share. Nov. 1 Declared and paid a dividend on common shares of $1.20 per share. Nov. 15 Purchased and retired 500 preferred shares at $58 per share. Dec. 31 After preliminary closing entries, the Income Summary account had a credit…
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