On December 31, 2023, Brisbane Company had 100,000 shares of common stock outstanding and 30.000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2024, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2024, for $45 per share. Net income for 2024 was $180,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2024. Required: Compute Brisbane's basic and diluted earnings per share for 2024 Note: Round your answers to 2 decimal places. Basic Diluted Earnings per share
Q: On October 15, 2025, Oil Products Co. purchased 4,000 barrels of fuel oil with a cost of $240,000…
A: Income statement:An income statement stands for the statement that shows profits and loss of the…
Q: Flounder Limited has 55,500 common shares outstanding, with an average issue price per share of $6.…
A: In case of reacquisition of shares which is also known as share buyback or stock repurchase, occurs…
Q: Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as…
A: An income statement, together with the balance sheet and cash flow statement, is one of three…
Q: Home Appliances Inc. produces washing machines and for 2021 budgeted to produce and sell 30,000…
A: Ending inventory under absorption costing = (Cost of goods manufactured/Total units produced)*No. of…
Q: Gladstorm Enterprises sells a product for $52 per unit. The variable cost is $37 per unit, while…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Lambert invests $20,000 for a 1/3 interest in a partnership in which the other partners have capital…
A: The objective of the question is to determine the capital of Lambert after his admission into the…
Q: Zippy Zap Cameras Inc. reported the following results for the month ending October 31: Retained…
A: Retained earnings is the earnings which is retained in the business for future use.
Q: A corporation produces three products from a joint process. They can either be sold at the split-off…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was…
A: The objective of the question is to calculate McMann's share of the income for the year. The income…
Q: At December 31, 2024, Crane Industries reports the following selected accounts from the unadjusted…
A: Bad debt expenseAt the end of the accounting period, a financial statement is prepared by every…
Q: elected comparative statement data for Carla Vista Corporation are presented below. All balance…
A: Asset turnover ratio measures the efficiency of company's assets to generate revenue.Return on…
Q: On July 10, 2023, Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The…
A: If a sport utility vehicle (SUV) is exempt from the annual “luxury car” depreciation caps, the…
Q: Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for…
A: Contribution margin per unit = selling price per unit- variable cost per unit.Contribution margin…
Q: Whispering Mining Company declared, on April 20, a dividend of $466,000 payable on June 1. Of this…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: QUESTION 8 Planet of the Crepes, Inc. is preparing its master budget in its first month of business.…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Quality data gathering, analysis, and reporting et cost of spoilage Re-entering data because of…
A: External failure costs include a wide range of monetary consequences, such as lawsuits, product…
Q: Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: A company produced 10,000 units of product that were slightly defective. The cost of making this…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Sheridan Corporation has outstanding 444,000 shares of $10 par value common stock. The corporation…
A: The dividend is declared to the shareholders from the retained earnings of the business. The stock…
Q: Weller Industries has six divisions. Its Electrical Division (which is operating at capacity)…
A: As asked by the student we need to solve part 2 and 3 of the question
Q: Cost of Goods Sold (FIFO): Units Unit Cost
A: UnitsUnit costTotal 01-Apr 29 $ 9.00 $ 26112-Apr 39 $ 12.00 $…
Q: A company began a new software development project in 2023. The project reached technological…
A: The objective of the question is to determine the amount of software development costs that will be…
Q: Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and…
Q: On January 1, 2025, Blossom Supply Corporation had $2.260,000 of $10 par value common stock…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Zebra Company purchases Glow Inc. for $13,985,000 cash on January 1, 2023. The book value of Glow…
A: The objective of the question is to calculate the amount of goodwill that Zebra Company should…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: Lets understand the basics.Shares are divided into two types which are,(1) Common stock(2) Preferred…
Q: New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal…
A: Annual Depreciation under SLM = (Cost - Salvage value)/Useful lifeAnnual Depreciation under DDB =…
Q: Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1,…
A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…
Q: 1. At the beginning of 2024, the company purchased a machine for $483,000 (salvage value of $48,300)…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: James Manufacturing had the following information available for July: Actual Results Units Sales…
A: The master budget represents the fixed budget prepared for the period. The flexible budget can be…
Q: Required: 1. Calculate the company's activity variances for July. Note: Indicate the effect of each…
A: ACTIVITY VARIANCEActivity variance is the comparative analysis tool which helps to determine the…
Q: Giannini Incorporated, which produces and sells a single product, has provided the following…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: A company purchases two pieces of research equipment at the beginning of 2024. The first piece of…
A: Research and development expense need to be recognized in the year fully when it is generates…
Q: Required information [The following information applies to the questions displayed below.] Holmes…
A: The important financial statements are prepared using the addjusted trial balance. The financial…
Q: ComLite Inc. uses revaluation accounting for a class of equipment it has. The equipment was…
A: The revaluation accounting is adopted to record the use of assets in a business using fair value. A…
Q: Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5.…
A: When a firm goes insolvent, the process of closing it down and dispersing its assets to claimants is…
Q: Required Information [The following information applies to the questions displayed below.] The fixed…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Explain how the fair value method is an improvement over the intrinsic value method.
A: There are two methods to account for the Compensatory stock option plans. They are: (1) Fair value…
Q: Turmer Hardware is adding a new product line that will require an investment of $1,530,000. Managers…
A: The payback period is a financial metric used to evaluate the time it takes for a project or…
Q: Prepare the entry to record depreciation for 2026.
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported…
A: Preferred Stock - Preference shares is a hybrid security where owners have a priority claim and to…
Q: Machine Replacement Decision A company is considering replacing an old piece of machinery, which…
A: Analyzing the various costs and advantages that would result from various approaches to a given…
Q: What would be the balance in Beresford's accumulated other comprehensive income with respect to…
A: In this question we need to compute balance in accumulated comprehensive income e.
Q: The following account balances are for the Agee Company as of January 1, 2020, and December 31,…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: The following units are available for sale during the year: January 1 Beginning inventory 10 units…
A: The inventory can be valued using different methods as FIFO, LIFO and average method. Using FIFO,…
Q: Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was…
A: The objective of the question is to calculate Singer's share of the income (loss) for the year when…
Q: The comparative statement of financial position for Wildhorse Corporation shows the following…
A: Lets understand the basics.Cashflow statement gets divided into three type of activities which…
Q: Assume that Crane Construction Company has a non-cancellable contract to construct a $5,440,000…
A: A thorough record of financial transactions is provided by journal entries, enabling in-depth…
Q: Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.76. During the…
A: Hi studentSince there are multiple subparts asked, we will answer only first question.Price earnings…
Q: Cooper Corporation must evaluate two capital expenditure proposals. Cooper's hurdle rate is 10%.…
A: PAYBACK PERIODPayback Period is one of the important Capital Budgeting Technique. Payback Period is…
RR
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 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. 3,370,000Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- 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.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.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?