The records of Jefferson Corporation reflected the following data at the end of the year. Required Is this a simple or a complex capital structure? Prepare the required EPS presentation for the year. The records of Jefferson Corporation reflected the following data at the end of the year. Liabilities Bonds payable, 5%, convertible (each $1,000 bond is convertible to 40 shares of common stock).... $150,000 Stockholders' Equity Common stock, $2 par, authorized 400,000 shares: Outstanding January 1, 150,000 shares. Sold and issued on October 1, 20,000 shares. Preferred stock, 6%, $5 par, nonconvertible, cumulative; authorized 100,000 shares; outstanding during the year, 20,000 shares... Paid-in capital in excess of par, common stock. Paid-in capital in excess of par, preferred stock . . Retained earnings .... Additional Information Net income... Common stock options outstanding (all year for 6,000 shares). Stock options: option price, $3 per share; average market price of common stock during the year, $3.60 per share. Convertible bonds: issued at face value. Income tax rate, 25% Required 1. Is this a simple or a complex capital structure? 2. Prepare the required EPS presentation for the year. 300,000 40,000 100,000 375,000 45,000 280,000 150,000
The records of Jefferson Corporation reflected the following data at the end of the year. Required Is this a simple or a complex capital structure? Prepare the required EPS presentation for the year. The records of Jefferson Corporation reflected the following data at the end of the year. Liabilities Bonds payable, 5%, convertible (each $1,000 bond is convertible to 40 shares of common stock).... $150,000 Stockholders' Equity Common stock, $2 par, authorized 400,000 shares: Outstanding January 1, 150,000 shares. Sold and issued on October 1, 20,000 shares. Preferred stock, 6%, $5 par, nonconvertible, cumulative; authorized 100,000 shares; outstanding during the year, 20,000 shares... Paid-in capital in excess of par, common stock. Paid-in capital in excess of par, preferred stock . . Retained earnings .... Additional Information Net income... Common stock options outstanding (all year for 6,000 shares). Stock options: option price, $3 per share; average market price of common stock during the year, $3.60 per share. Convertible bonds: issued at face value. Income tax rate, 25% Required 1. Is this a simple or a complex capital structure? 2. Prepare the required EPS presentation for the year. 300,000 40,000 100,000 375,000 45,000 280,000 150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Am. 002.
Transcribed Image Text:The records of Jefferson Corporation reflected the following data at the end of the year. Required Is this a
simple or a complex capital structure? Prepare the required EPS presentation for the year.
The records of Jefferson Corporation reflected the following data at the end of the year.
Liabilities
Bonds payable, 5%, convertible (each $1,000 bond is convertible to 40 shares of common stock).... $150,000
Stockholders' Equity
Common stock, $2 par, authorized 400,000 shares:
Outstanding January 1, 150,000 shares..
Sold and issued on October 1, 20,000 shares ....
Preferred stock, 6%, $5 par, nonconvertible, cumulative; authorized 100,000 shares;
outstanding during the year, 20,000 shares ....
Paid-in capital in excess of par, common stock.
Paid-in capital in excess of par, preferred stock . .
Retained earnings ..
Additional Information
Net income......
Common stock options outstanding (all year for 6,000 shares).
Stock options: option price, $3 per share; average market price of common stock
during the year, $3.60 per share.
Convertible bonds: issued at face value.
Income tax rate, 25%
Required
1. Is this a simple or a complex capital structure?
2. Prepare the required EPS presentation for the year.
300,000
40,000
100,000
375,000
45,000
280,000
150,000
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