Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the Income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (l.e., 5,500,000 should be entered as 5.50).)
Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the Income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (l.e., 5,500,000 should be entered as 5.50).)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18P
Related questions
Question
![Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years
ending December 31, 2019, 2020, and 2021.
Balance at January 1, 2019
sale of preferred shares
sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2019
Retirement of common shares, 4/11
Cash dividend, preferred
Cash dividend, common
3-for-2 split effected in the form of a
common stock dividend, 8/12
Net income
Balance at December 31, 2020
18% common stock dividend, 5/1
sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2021
Year
2019
2020
2021
LOCKE INTERTECHNOLOGY CORPORATION
statements of shareholders' Equity
For the Years Ended Dec. 31, 2019, 2020, and 2021
($ in millions)
Numerator / Denominator = Earnings per share
1
1
1
=
Preferred
stock,
$10 par
12
12
12
$12
Common
stock,
$1 par
80
$
11
91
(4)
43.5
130.5
13.05
3
$146.55
Additional
Paid-in
Capital
530
$
480
81
1,091
(36)
(43.5)
1,011.5
130
38
$1,179.5
Retained
Earnings
$ 1,892
(4)
(18)
310
2,180
(21)
(22)
410
2,543
(143.05)
(3)
(29)
426
$2,793.95
Required:
Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and
compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and
2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2
decimal places (l.e., 5,500,000 should be entered as 5.50).)
Total
Shareholders'
Equity
$ 2,502
492
92
(4)
(18)
310
3,374
(61)
(4)
(22)
410
3,697
41
(3)
(29)
426
$ 4,132](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1341decc-8dec-4d41-bf9b-f8cce7b2aabd%2Fa69d550c-eab7-4d5d-9e2e-d3e4631f39a9%2Ffmvxan6_processed.png&w=3840&q=75)
Transcribed Image Text:Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years
ending December 31, 2019, 2020, and 2021.
Balance at January 1, 2019
sale of preferred shares
sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2019
Retirement of common shares, 4/11
Cash dividend, preferred
Cash dividend, common
3-for-2 split effected in the form of a
common stock dividend, 8/12
Net income
Balance at December 31, 2020
18% common stock dividend, 5/1
sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2021
Year
2019
2020
2021
LOCKE INTERTECHNOLOGY CORPORATION
statements of shareholders' Equity
For the Years Ended Dec. 31, 2019, 2020, and 2021
($ in millions)
Numerator / Denominator = Earnings per share
1
1
1
=
Preferred
stock,
$10 par
12
12
12
$12
Common
stock,
$1 par
80
$
11
91
(4)
43.5
130.5
13.05
3
$146.55
Additional
Paid-in
Capital
530
$
480
81
1,091
(36)
(43.5)
1,011.5
130
38
$1,179.5
Retained
Earnings
$ 1,892
(4)
(18)
310
2,180
(21)
(22)
410
2,543
(143.05)
(3)
(29)
426
$2,793.95
Required:
Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and
compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and
2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2
decimal places (l.e., 5,500,000 should be entered as 5.50).)
Total
Shareholders'
Equity
$ 2,502
492
92
(4)
(18)
310
3,374
(61)
(4)
(22)
410
3,697
41
(3)
(29)
426
$ 4,132
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