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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).)

FINANCIAL ACCOUNTING
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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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
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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