a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 900 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $18. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $
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Windsor Company’s net income for 2020 is $51,500. The only potentially dilutive securities outstanding were 900 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,700 shares of common were outstanding during 2020. The average market price of Windsor’s stock during 2020 was $18.
(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
Diluted earnings per share |
$
|
(b) Assume the same facts as those assumed for part (a), except that the 900 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $18. (Round answer to 2 decimal places, e.g. $2.55.)
Diluted earnings per share |
$
|
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- 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.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.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.
- 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.Metlock Company's net income for 2025 is $49,200. The only potentially dilutive securities outstanding were 1,100 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 9,900 shares of common were outstanding during 2025. The average market price of Metlock's stock during 2025 was $15. a. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Assume the same facts as those assumed for part (a), except that the 1,100 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $15. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $Sage Company's net income for 2020 is $47,100. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 9.700 shares of common were outstanding during 2020. The average market price of Sage's stock during 2020 was $15. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $15. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $
- Sheffield Company's net income for 2025 is $53,200. The only potentially dilutive securities outstanding were 1,000 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 10,700 shares of common were outstanding during 2025. The average market price of Sheffield's stock during 2025 was $25. a. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $25. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per shareAyayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20.(a) Compute diluted earnings per share. Diluted earnings per share $Venzuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venzuela's stock during 2020 was $20. Instructions a. Compute diluted earnings per share. (Round to nearest cent.) b. Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $20.
- Shamrock Company’s net income for 2020 is $52,300. The only potentially dilutive securities outstanding were 1,200 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 9,300 shares of common were outstanding during 2020. The average market price of Shamrock’s stock during 2020 was $20. (a) Compute diluted earnings per share. (b) Assume the same facts as those assumed for part (a), except that the 1,200 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $20. Diluted earnings per shareNovak Company’s net income for 2020 is $594,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 26,000 executive stock options issued during 2019, each exercisable for one share at $19.50, none of these have been exercised. The average market price of Novak’s stock during 2020 was $25.00.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $26.00 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal placesMarin Company’s net income for 2020 is $691,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 23,000 executive stock options issued during 2019, each exercisable for one share at $21.00, none of these have been exercised. The average market price of Marin’s stock during 2020 was $26.50.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $27.50 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $30.00. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places