Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations. Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets. Earnings per Share: It is a portion of profit that is earned by each common stock. Formula: Earnings per share ( EPS ) = Net income − Preferred dividends Number of common shares outstanding To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

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Answer 1

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Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

3.

To determine

To Describe: The advantages and disadvantages of each plans.

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Louisa Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Goodheart's blockbuster drug called Mintia. Beginning work-in-process (40% completed) 1,025 units Transferred-in 4,900 units Normal spoilage 445 units Abnormal spoilage 245 units Good units transferred out 4,500 units Ending work-in-process (1/3 completed) 735 units Conversion costs in beginning inventory $ 3,250 Current conversion costs $ 7,800 Louisa calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Mintia that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted-average method, answer the following question: What are the…

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Answer 2

Question

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

3.

To determine

To Describe: The advantages and disadvantages of each plans.

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Answer 3

Question

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

3.

To determine

To Describe: The advantages and disadvantages of each plans.

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Answer 4

Question

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

3.

To determine

To Describe: The advantages and disadvantages of each plans.

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Answer 5

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

3.

To determine

To Describe: The advantages and disadvantages of each plans.

Answer 6

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

Answer 7

Chapter 12, Problem 12.1BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Common stock: It refers to a security issued in a form of certificate and implies the right of ownership of an investor over a portion of company’s earnings and assets.

Earnings per Share: It is a portion of profit that is earned by each common stock.

Formula:

Earnings per share(EPS)=Net income −Preferred dividends Number of common shares outstanding

To Determine: Earnings per share of common stock for each plan, if income before bond interest and income tax is $10,000,000.

Answer 8

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

Answer 9

2.

To determine

Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

Answer 10

3.

To determine

To Describe: The advantages and disadvantages of each plans.

Answer 11

3.

To determine

To Describe: The advantages and disadvantages of each plans.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Describe the two distinct obligations incurred by...Ch. 12 - Explain the meaning of each of the following terms...Ch. 12 - Prob. 3DQ Ch. 12 - A corporation issues 26,000,000 of 9% bonds to...Ch. 12 - Prob. 5DQ Ch. 12 - The following data relate to a 2,000,000, 8% bond...Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Fleeson Company needs additional funds to purchase...Ch. 12 - Prob. 10DQ

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

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Earnings per share of common stock for each plan, if income before bond interest and income tax is $6,000,000.

To Describe: The advantages and disadvantages of each plans.

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Chapter 12 Solutions