On December 31, 2015, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stockdividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders,respectively, on December 15, 2016.On February 28, 2016, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan,2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2016, was $2,100,000.The income tax rate is 40%.Required:Compute Dow’s earnings per share for the year ended December 31, 2016.
Q: Early in 2008, Septa, Inc., was organized with authorization to issue 1,000 shares of $100 par value…
A: Shareholder's equity as on 32st Dec. 2011 Common share capital(80000*$1) $80000 Preferred share…
Q: Fox Company made the following transactions in the common stock of NOP Company:…
A: As per IFRS 9, Financial instruments, any financial asset classified as trading security is measured…
Q: Horton Co. was organized on January 2, 2012, with 500,000 authorized shares of P10 par value common…
A: January 5 Cash Ac Dr. 5250000 to Share capital 3750000…
Q: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Cambridge Corp. has a single class of shares. As its year ended December 31, 2015, the company had…
A: The journal entry can be defined as the process of recording business transactions in the accounting…
Q: In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of…
A: 1. Prepare journal entries to record the given transactions.Record the issuance of common shares.
Q: Perez Corporation was organized on January 1, 2009. During its first year, the corporation issued…
A: A dividend is the distribution of some of a company's earnings to a class of its shareholders, as…
Q: On December 31, 2017, Ainsworth, Inc., had 800 million shares of common stock outstanding. Thirty…
A: Net loss per share: The effect of dilution is excluded from calculation of net loss per share.…
Q: Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10…
A: Introduction: Shareholders' equity which is also known as net worth of the company, is the owners…
Q: On December 31, 2017, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of…
A: Earnings per share refers to the earnings available for the each share of a shareholder. It is…
Q: 1. What is the amount debited to accumulated profits as a result of the declaration of the 10% stock…
A: Dividend is the amount which the company gives to its shareholders out from the profits earned by…
Q: Debacle Company was organized on January 1, 2012. On that date, it issued 200,000 shares with P10…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Horton Co. was organized on January 2, 2012, with 500,000 authorized shares of P10 par value common…
A: Paid-in Capital from the Treasury Stock account is the excess amount over the purchased price of the…
Q: At December 31, 2017, the Shalom Company reported the following extract from the company’s balance…
A: Shalom Company Shareholders Equity Section Shareholders Equity Preferred stock (25000 x $40…
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: Jay-ar Corp. issued 20,000 shares of P5 par common stock at P10 per share. On December 31, 2017,…
A: when we prepare the balance sheet of the company then generally there are two category equity and…
Q: On January 15, 2014, King International’s board of directors declared a 3-for-1 stock split of its…
A: Particulars Amount ($) Common Stock $12 par (3200000 shares authorized and 800000 issued) 9600000…
Q: On December 31, 2011 and 2012, Simon Company had 100, 000 shares of ordinary share and 50,000 shares…
A: The price-earning ratio is calculated as market price per share divided by earning per share.
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…
A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: The stockholders’ equity section of the entities’ balance sheet discloses its position relating to…
Q: Grant, Inc. had 60,000 shares of treasury stock ($10 par value) at December 31, 2014, which it…
A: No. of shares of treasury stock at December 31, 2015 = No. of shares of treasury stock at December…
Q: On January 1 2018, ACI Ltd. had 5,80,000 shares of common stock outstanding . During 2018, it had…
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…
Q: On January 1, 2016, Dexon Corp had 20,000 shares of common shares outstanding. It sold another 2,600…
A: Earnings per share was used to measure the profitability of an entity. Earnings per share (EPS):…
Q: On January 1, 2016, Tonge Industries had outstanding 440,000 common shares (par $l) that originally…
A:
Q: Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Andoy Corp. was organized on January 1, 2017 with authorized capital of 100,000 ordinary shares, P20…
A: Share premium represents the value higher than par value of the shares issued.
Q: The stockholders' equity section of Echota Corporation at December 31, 2013, included the following:…
A: Cumulative preference stock (also called Cumulative preference shares) is a class of preferred stock…
Q: Early in 2007, Parker Industries was formed with authorization to issue 100,000 shares of $20…
A: Stockholders equity sections represents the funds contributed by all types of shareholders such as…
Q: Early in 2009, Feller Corporation was formed with authorization to issue 50,000 shares of $1…
A: Statement of cash flows: All cash In and out transactions are record in cash flow statement. It…
Q: During 2016, Goodfellow has the following transactions involving its common and preferred stock.…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Mai Corporation was organized on January 1, 2016, Duringits first year, the corporation issued…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: On December 10, 2010, Smitty Corporation reacquired2,000 shares of its own $5 par value common stock…
A: At the time of reacquisition of 2,000 shares of its own $5 par value common stock at a priceof $60…
Q: On December 31, 2012, the stockholders' equity section of Arndt, Inc., was as follows: Common stock,…
A: Amount debited to retained earnings for stock dividend = fair value of the stock x no. of shares…
Q: On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%,…
A: SOLUTION- Given information is: Net Income = $21,00,000 Dividend to preference shareholders =…
Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Given information is: Net Income = $21,00,000 Dividend to preference shareholders = $75,000
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50…
A: Dividend arrears are paid for cumulative preferred stock. Arrears in Year 1 = 20,000*$50*6% Arrears…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…
Q: On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Oliver CommuRNcations, Inc., began 2018 with 260,000 shares of $1 par common stock issUd and…
A: Answer) Journal Entry for Issuance of Common Stock Date Accounts Debit Credit…
Q: On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 24,000…
A: Answer- Part 1 - Computation of Basic Earnings per share- Income after 7% dividend on cumulative…
Q: On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A:
Q: The shareholders' equity section of Superior Corporation's balance sheet as of December 31, 2015, is…
A: The question is based on the concept of Financial Accounting.
On December 31, 2015, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of
8%, noncumulative, nonconvertible
dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders,
respectively, on December 15, 2016.
On February 28, 2016, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan,
2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2016, was $2,100,000.
The income tax rate is 40%.
Required:
Compute Dow’s earnings per share for the year ended December 31, 2016.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%,noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividendon May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018.On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan,2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000.The income tax rate is 40%.Required:Compute Dow’s earnings per share for the year ended December 31, 2018On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000. The income tax rate is 40%. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2019, if Merrill’s 2019 net income is at least $500,000. In 2018, Merrill’s net income was $630,000. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at…On January 1, 2016, Tonge Industries had outstanding 440,000 common shares (par $l) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock (par $100), convertible into 40,000 common shares. On October 1, 2016, Tonge sold and issued an additional 16,000 shares of common stock at $33. At December 31, 2016, there were incentive stock options outstanding, issued in 2015, and exercisable after one year for 20,000 shares of common stock at an exercise price of $30. The market price of the common stock at year-end was $48. During the year the price of the common shares had averaged $40. Net income was $650,000. The tax rate for the year was 40%. Required: Compute basic and diluted EPS for the year ended December 31, 2016.
