ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Author: Christensen
Publisher: MCG CUSTOM
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Chapter 10, Problem 10.32P
To determine
Consolidated earnings per share:is calculated in the same way as earnings per share is calculated in a single corporation. Consolidated earnings per share is based on the income attributed to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and any preferred dividends requirement of the parent company from consolidated net income. The resulting amount is then divided by the weighted-average number of the parent’s common shares outstanding during the period. In computation of EPS, the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are treated as if they had been exercised, in addition income available to subsidiary common shareholders also changes.
computation of basic anddiluted EPS, for the consolidated entity for 20X4.
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Darren corp has the following details for one of its subsidiaries:
Long-term debt:
9% payable for notes =$1,018,000
convertible bonds payable at 7% -5,048,000
Bonds payable at 9% -6,026,000
Total long-term debt-$12,092,000
Shareholders' equity:
Preferred stock, 6% cumulative, $57 par value, 106,300 shares authorized, 26,575 shares issued and
outstanding $1,514,775
Common stock, $1 par, 10,075,000 shares authorized, 1,007,500 shares issued and outstanding=1,007,500
Additional paid-in capital=4,001,800
Retained earnings=6,018,900|
Total shareholders' equity=$12,542,975
Options were granted on July 1, 2013, to purchase 203,700 shares at $18 per share. Although no options were
exercised during fiscal year 2014, the average price per common share during fiscal year 2014 was $20 per share.
Each bond was issued at face value. The 7% convertible bonds will convert into common stock at 57 shares per
$1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2013.
The…
XYZ Company purchased 10,000 of its own shares at $14 per share. Journalize this transaction.
DATE
Debit
Credit
X/X
XYZ Company sold 8,500 shares of treasury stock (from (c)) at $18 per share. Journalize this transaction.
DATE
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X/X
XYZ Company sold 1,500 shares of treasury stock (from (c)) at $13 per share. Journalize this transaction.
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Nexis Corp. issues 2,870 shares of $8 par value common stock at $17 per share. When the transaction is recorded, what credit entry or entries are made?
a.Common Stock $48,790.
b.Common Stock $22,960 and Paid-in Capital in Excess of Stated Value $25,830.
c.Common Stock $22,960 and Paid-in Capital in Excess of Par Value $25,830.
d.Common Stock $25,830 and Retained Earnings $22,960.
Chapter 10 Solutions
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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