Exercise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9]Information from the financial statements of Ames Fabricators, Inc., included the following:Common sharesConvertible preferred shares(convertible into 34,000 shares of common)10% convertible bonds(convertible into 20,000 shares of common)Basic EPSDiluted EPSNumerator 111Denominator =Ames's net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends of $5 pershare on its preferred stock during 2018.=December 31Required:Compute basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.)=2018100,000Earnings per Share13, 200$1,000,0002017100,00013, 200$1,000,000

Earnings Per Share -A company's profitability is assessed using its earnings per share. It can be…

rcise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9 mation from the financial statements of Ames Fabricators, Inc., included the following: mmon shares Convertible preferred shares (convertible into 34,000 shares of common) 10% convertible bonds. (convertible into 20,000 shares of common) December 31 2018 100,000 13,200 $1,000,000 $1,000,000 2017 100,000 13,200 s's net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends on its preferred stock during 2018. uired: pute basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands

rcise 19-21 EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9 mation from the financial statements of Ames Fabricators, Inc., included the following: mmon shares Convertible preferred shares (convertible into 34,000 shares of common) 10% convertible bonds. (convertible into 20,000 shares of common) December 31 2018 100,000 13,200 $1,000,000 $1,000,000 2017 100,000 13,200 s's net income for the year ended December 31, 2018, is $520,000. The income tax rate is 40%. Ames paid dividends on its preferred stock during 2018. uired: pute basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands

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

Dengar
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 520 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 152 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $950 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended…
Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 Issue 1,300 shares of common stock for $44 per share. Purchase 420 shares of treasury stock for $37 per share. Resell 220 shares of treasury stock purchased on May 15 for $42 per share. Issue 220 shares of preferred stock for $47 per share. Declare a cash dividend on both common and preferred stock of $0.70 per share to all stockholders of record on December 15. (Hint: Dividenda are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. October…
Required information Problem 8-24 (Algo) Common and preferred stock-issuances and dividends LO 1, 2 [The following information applies to the questions displayed below.] Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: • 1,100,000 shares of no-par common stock were authorized; 342,000 shares were issued on January 1, 2019, at $26 per share. • 381,000 shares of $90 par value, 9.10% cumulative, preferred stock were authorized; 132,000 shares were issued on January 1, 2019, at $128 per share. • No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $6,260,000, payable on February 12, 2022, to holders of record as of January 8, 2022. Problem 8-24 (Algo) Part c c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.) Common stock dividends per share
Convertible Bonds Instructions Chart of Accounts General Journal X Instructions On January 1, 2018, when its $30 par value common stock was selling for $60 per share, a corporation issued $30 million of 12% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation’s $30 par value common stock. The debentures were issued for $31 million. At the time of issuance, the present value of the bond payments was $28.50 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2019, the corporation’s $30 par value common stock was split 3 for 1. On January 1, 2020, when the corporation’s $10 par value common stock was selling for $70 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method…
Waterway Corporation's post-closing trial balance at December 31, 2020, is shown as follows. WATERWAY CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2020 Accounts payable Accounts receivable Accumulated depreciation-buildings Additional paid-in capital in excess of par-common From treasury stock Allowance for doubtful accounts Bonds payable Buildings Cash Common stock ($1 par) Dividends payable (preferred stock-cash) Inventory Land Preferred stock ($50 par) Prepaid expenses Retained earnings Treasury stock (common at cost) Totals Dr. $483,000 1,328,000 208,000 582,000 390,000 44,000 169,000 $3,204,000 Cr. $215,200 181,000 1,235,000 163,000 27,000 322,000 192,000 3,800 550,000 315,000 $3,204,000 At December 31, 2020, Waterway had the following number of common and preferred shares.
Question 14 Brianna company has 2,500,000 ordinary shares outstanding on January 1, 20B. An additional 500,000 ordinary shares were issued on April 1, 20B, and 250,000 more on July 1, 20B. On October 1, 20B, Brianna issued 5,000, P1,000 face value, 7% convertible bonds. Each bond is convertible into 40 ordinary shares. No bonds were converted into ordinary shares in 20B. What is the number of shares to be used in computing diluted earnings per share? 2,875,000 2,925,000 3,000,000 3,050,000
EPS with Convertible Bonds and Preferred Stock The Ehrlich Corporation issued 10-year, $5,000,000 par, 7% callable convertible bonds on January 2, 2022. The bonds have a par value of $1,000, with interest payable annually. Each bond is convertible into 18 shares of common stock. The bonds were issued at 100. Ehrlich's effective tax was 20%. Net income in 2022 was $9,500,000, and the company had 2,000,000 shares outstanding during the entire year.Instructions: a. Compute both basic and diluted earnings per share. Show calculations. b. Recompute the schedule as if the security was convertible cumulative preferred stock, $5,000,000, 8%, $100 par value. Each share of preferred stock is convertible into 1 share of common stock.
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares se stock options [LO19-5, 19-6, 19-7, 19-8) On December 31, 2023, Berciair Incorporated had 360 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding On March 1, 2024, Berclair purchased 88 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2024. * Four million treasury shares were sold on October 1 .Net income for the year ended December 31, 2024, was $550 million Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share . During 2024, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended…
Problem 19-11 (Static) EPS; nonconvertible preferred stock; treasury shares; shares sold; stock dividend (LO19-4, 19-5, 19-6, 19-7] On December 31, 2020, Dow Steel 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, 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 $2.100,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round Intermedlate calculations. Enter your answers in thousands. Round "Earnings per share" answer to 2 decimal places.) Numerator Denominator Earnings per share 2 of 3# Next > < Prev %3D
oblem Set i Saved Help Save & Exit S Exercise 19-16 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold [LO19-5, 19-6, 19-7 On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 8 million shares of 9%, $100 par value Cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 54 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. • Nine million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $400 million. Required: Compute Berclair's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). $ Numerator 328 ÷ Denominator ÷ = Earnings per Share 271 = $ 1.21 Check my
Problem 19-17 (Static) EPS; options; convertible preferred; additional shares [LO19-4, 19-5, 19-6, 19-7, 19- 8, 19-9] On January 1, 2024, Jaewoo Industries had outstanding 440,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. . On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $33. • At December 31, 2024, there were 20,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 20,000 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 $650,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in…