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- Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.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.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?
- 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.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?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.
- The Sombrero Company began operations on January 1, 2018. As at December 31, 2019 the partial balance sheet of Sombrero Company reflected the following balances: Long-term bank loans: $ 800,000 Bonds payable — 10%, convertible par value $500,000, net of discount: $480,000 Preferred shares — $2 dividend, no-par value, cumulative, 100,000 shares authorized, 10,000 shares outstanding: $100,000 Preferred shares — $5 dividend, no-par value, noncumulative, convertible, 500,000 shares authorized, 100,000 shares outstanding: $400,000 Conversion rights: $150,000 Common shares — no-par value; 1,000,000 authorized, 500,000 issued: $1,500,000 Additional information 1. Net income for the 2019 was $950,000. 2. No dividends were declared in 2018. 3. Dividends in the amount of $600,000 were declared in 2019. 4. Each $1,000 bond is convertible into 100 common shares. Interest expense on the bonds for the year was $22,000. 5. The conversion rate on the preferred shares is one…Amy Dyken, controller at Windsor Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Windsor's financial statements. Below is selected financial information for the fiscal year ended June 30, 2025. Long-term debt Notes payable, 10% 9% convertible bonds payable 10% bonds payable Total long-term debt Shareholders' equity Preferred stock, 5% cumulative, $50 par value, 109,000 shares authorized, 27,250 shares issued and outstanding Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstanding Additional paid-in capital Retained earnings Total shareholders' equity The following transactions have also occurred at Windsor. 1. 2. 3. 4. Windsor Pharmaceutical Industries Selected Balance Sheet Information June 30, 2025 5. 6. $1,000,000 5,050,000 5,920,000 $11,970,000 $1,362,500 980,000 3,930,000 6,050,000 $12,322,500 Options were granted on July 1, 2024, to purchase…The following information is taken from Multi-Task Corporation’s November 30, 2021 balance sheet: Liabilities: 6% Bonds payable, $4,500,000, maturing October 31, 2024, each $1,000 bond convertible into 25 common shares at any time up to October 31, 2024 $4,500,000 Shareholders’ Equity: 7% Cumulative preferred shares, convertible at the rate of 5 common shares for 1 preferred share, 44,380 shares outstanding 957,000 Common shares, 2,675,000 shares issued and outstanding 8,025,000 Multi-Task Corporation had net income for the 2021 year of $8,344,500. Multi-Task pays income tax at a rate of 28%. Both the bonds and the preferred shares were outstanding for the entire year. The weighted-average number of common shares outstanding for the 2021 year was 2,745,500. Required: Calculate basic earnings per share for Multi-Task Corporation for the year ending November 30, 2021. Calculate diluted earnings per share for…
- Required - In accordance with IAS 33 Earnings per share a. Compute basic earnings per share for 2019, b. Compute diluted earnings per share for 2019 , c. State the Presentation and Disclosure requirements The information below pertains to Rainfall plc for 2019. Net Income for the year 8% convertible bonds issued at par ($1,000 per bond); $2,000,000 each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% 6% convertible, cumulative preference shares, $100 par value; each share is convertible into 3 shares of ordinary shares. Ordinary shares, $10 par value $1,200,000 $4,000,000 $6,000,000 Tax rate for 2019 40% Average market price of ordinary shares $25 per sharePREPARE JOURNAL ENTRIES AND T-ACCOUNTS PROBLEM 1: You were assigned to audit the shareholders’ equity of Glory Inc. for the year endedDecember31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The followingschedule reflects the company’s capital balances as of December 31, 2018:Ordinary shares, 100,000 shares issued during the company’s P 1,400,000incorporation in exchange of a land with a fair value of P1.4 M.Preference shares, 50,000 shares issued during the company’s 2,500,000incorporation at P50 per share. Each preference share is convertibleto four ordinary sharesRetained earnings, which is the company’s net income in 2018 540,000Total shareholders’ equity P 3,440,000Your inquiries and investigation revealed the following transactions, which occurred in 2019:a. On January 15, the company reacquired 20, 000 ordinary shares (from the 2018 issue) at P22…The following information pertains to Maxwell Corporation. Assume that all balance sheet amounts represent both average and ending figures. Maxwell Corporation had 6,000 shares of common stock issued and outstanding. The market price of Maxwell common stock on December 31, 2019, was $20. Jasmin paid dividends of $0.90 per share during 2019. What is the debt to equity ratio for this corporation? Round your answer to 1 decimal place. Maxwell Corporation Partial Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Maxwell Corporation Income Statement For the Year Ended December 31, 2019 Net sales Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes expense Net income $ 60,000 90,000 150,000 $300,000 $80,000 45,000 $35,000 15,000 $20,000 5,000 $15.000