Current Attempt in Progress Sunland Co. has 4770000 shares of common stock outstanding on December 31, 2024. An additional 204000 shares are issued on April 1, 2025, and 486000 more on September 1. On October 1, Sunland issued $5970000 of 8% convertible bonds. Each $1,000 bond is convertible into 40 shares of its common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, on December 31, 2025 are O 5085000 and 5085000, O 5865300 and 5297700. O 5085000 and 5144700. 5085000 and 2982300

Current Attempt in Progress Sunland Co. has 4770000 shares of common stock outstanding on December 31, 2024. An additional 204000 shares are issued on April 1, 2025, and 486000 more on September 1. On October 1, Sunland issued $5970000 of 8% convertible bonds. Each $1,000 bond is convertible into 40 shares of its common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, on December 31, 2025 are O 5085000 and 5085000, O 5865300 and 5297700. O 5085000 and 5144700. 5085000 and 2982300

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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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.
Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
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?
Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?
Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.
Current Attempt in Progress At December 31, 2024, Wildhorse Company had 800000 shares of common stock outstanding. On October 1, 2025, an additional 160000 shares of common stock were issued. In addition, Wildhorse had $10550000 of 5% convertible bonds outstanding at December 31, 2024, which are convertible into 366000 shares of common stock. No bonds were converted into common stock in 2025. The net income for the year ended December 31, 2025, was $2513090. Assuming an income tax rate of 30%, diluted earnings per share for the year ended December 31, 2025 is O $2.52. O $3.43. O $2.08. O $2.39.
Current Attempt in Progress The information below pertains to Crane Company for 2021. Net income for the year $1.210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,990,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 3,860,000 Common stock, $10 par value 5,880,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 72,400 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Diluted earnings per share
Bonita Industries, has 4230000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 391000 more on July 1, 2021. On October 1, 2021, Bonita issued 19000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively? A. 5027750 and 5122750 B. 5027750 and 5422750 C. 5027750 and 5027750 D.
Sunland Company, has 4170000 shares of common stock outstanding on December 31, 2020. An additional 803000 shares of common stock were issued on April 1, 2021, and 393000 more on July 1, 2021. On October 1, 2021, Sunland issued 19800, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?
Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings. P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31. the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?
On January 1, 2018 Orion Company Limited had 7,00,000 shares to continue its business.On April 1, 2018 the company issued an additional 3,00,000 shares for cash . All10,00,000 shares were outstanding on December 31.2016. Orion Company Limited alsoissued Tk.7,00,000 of 20 years 8% convertible bonds at par on August 1,2018 . EachTk.1000 bond converts to 50 shares common at any interest date. None of the bonds havebeen converted to date. Orion Company Limited is preparing its annual report for thefiscal year ending December 31, 2018. The annual report will show earnings per sharesending figures based upon a reported after tax net income of Tk.15,40,000 ( The tax rateis 30%)Required: Compute the Basic earnings per share & Diluted earnings per share.