Preferred Stock-6%, $60 par value; 2,000 shares authorized, 1,000 shares issued and outstanding $ 60,000 Common Stock-$5 par value; 80,000 shares authorized, 48,000 shares issued, 46,700 shares outstanding 240,000 470,000 (26,000) Paid-In Capital in Excess of Par-Common Treasury Stock-Common; 1,300 shares at cost
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Computing earnings per share and price/earnings ratio
Rocket Corp. earned net income of $153,040 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Rocket’s books include the following figures:
Requirements
- Compute Rocket’s EPS for the year.
- Assume Rocket’s market price of a share of common stock is $12 per share. Compute Rocket’s price/earnings ratio.
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- Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. Preferred stock subscriptions receivable 50,000 Preferred stock, 10 par, 9% (200,000 shares authorized; 20,000 shares issued)200,000 Preferred stock subscribed (10,000 shares)100,000 Paid-in capital in excess of parpreferred stock40,000 Common stock, 10 par (100,000 shares authorized; 60,000 shares issued)600,000 Paid-in capital in excess of parcommon stock250,000 Retained earnings750,000 During 20--, Gonzales Company completed the following transactions affecting stockholders equity: (a) Received 20,000 for the balance due on subscriptions for 4,000 shares of preferred stock with a par value of 40,000 and issued the stock. (b) Purchased 10,000 shares of common treasury stock for 18 per share. (c) Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d) Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e) Sold 5,000 shares of common treasury stock for 100,000. (f) Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g) Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following stock transactions during the year: (a) Issued 5,000 shares of no-par common stock with a stated value of 10 per share for 50,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 10 per share for 63,000 cash. (c) Issued 3,500 shares of no-par, 6% preferred stock with a stated value of 22 per share for 77,000 cash. (d) Issued 10,000 shares of 10 par common stock for land with a fair market value of 100,000. (e) Issued 11,000 shares of 10 par common stock with an 11 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 30 par, 6% preferred stock for land with a fair market value of 243,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during its first 5 years of operations: (a) Issued 25,000 shares of 1 par common stock for 25,000 cash. (b) Issued 20,000 shares of 1 par common stock for 22,000 cash. (c) Issued 2,000 shares of 50 par, 8% preferred stock for 100,000 cash. (d) Issued 1,000 shares of 50 par, 8% preferred stock for 51,500 cash. (e) Issued 2,500 shares of no-par common stock for 11,875 cash. (f) Issued 1,500 shares of no-par, 7 preferred stock for 72,000 cash. REQUIRED 1. Prepare general journal entries for these transactions, identifying each by letter. 2. Assume that stock transactions a, b, and c occurred in year 1. The amount available for dividends at the end of year 1 is 26,000. Prepare the dividend allocation between the preferred and common shares in total and per share for year 1.
- Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends…Preferred stock, 5%,$15par, 7000 shares authorized, 5,500 shares issued. 82,500 common stock, $0.30 par, 1,200,000 shares authorized and issued 360,000 paid-in-capital in excess of par-common Total paid in capital Retained Earning Total stockholder's Equity 400,000 842,500 260,000 1,102,500 Requirements: 1. Is Partlow's preferred stock cumulative or noncumulative? How can you tell? 2. Partlow declares cash dividends of $30,000 for 2010. How much of the dividends goes to preferred. How much goes to common? 3. Partlow passed the preferred dividend in 2011 and 2012. In 2013 the company declares cash dividends of $45,000. How much of the dividend goes to preferred? How much goes to common?Preferred Stock-3%, $13 Par Value, 8,000 shares authorized, 6,500 shares issued and outstanding Common Stock $0.15 Par Value, 2,050,000 shares authorized, 1,200,000 shares issued and outstanding
- Preferred Stock, 6%, $50 par value, 8,000 shs authorized, ______________ shs issued and outstanding $105,000 Common Stock, $4 par value, 20,000 shs authorized, 10,000 shs issued, ________ shs outstanding 40,000 APIC Preferred Stock 56,700 Common Stock 30,000 Total Paid In Capital 231,700 Retained Earnings 35,000 Less: Treasury Stock, 4,000 shs 15,000 Total Stockholders' Equity 251,700 How many shares of…Paid-in-capital Preferred stock, 5%,$15par, 7000 shares authorized, 5,500 shares issued. 82,500 common stock, $0.30 par, 1,200,000 shares authorized and issued 360,000 paid-in-capital in excess of par-common 400,000 Total paid in capital 842,500 Retained Earning 260,000 Total stockholder's Equity 1,102,500 Requirements: Is Partlow’s preferred stock cumulative or noncumulative? How can you tell? Partlow declares cash dividends of $30,000 for 2010. How much of thedividends goes to preferred. How much goes to common? Partlow passed the preferred dividend in 2011 and 2012. In 2013 thecompany declares cash dividends of $45,000. How much of the dividend goes to preferred? How much goes to common?Prepare the shar (b) financial position at Decen to shareholders' equity 1. The following information relates Preference Share Capital, 12%, P50 par cumulative, 10,000 shares authorized Ordinary Share Capital, P1 stated value, 2,000,000 shares authorized Share Premium - Preference Paid in Capital in Excess of Stated Value Retained Earnings P 400,000 1,000,000 80,000 1,400,000 1,816,000 40,000 Treasury Shares - Ordinary (10,000 shares) During 2018, the corporation had the following transactions and events pertaining to its shareholders' equity: Issued 20,000 ordinary shares for P100,000 Sold 6,000 treasury shares for P28,000. Issued 5,000 shares of ordinary share capital for a piece of equipment with cash price of P25,000. Purchased 1,000 shares of ordinary for the treasury at a cost of P6,000. Declared the annual dividend on preference share and PO.20 cash dividend on ordinary share. Determined that profit for the year was P377,000 Feb. 1 Apr. 30 Sept. 1 Nov. 2 Dec. 31 31 31 The fair…
- Preferred stock, $50 par value, 5,000 shares authorized, ? shares issued $300,000 Common stock, ? par, 10,000 shares authorized, 7,000 shares issued 70,000 Additional paid-in capital—Preferred 10,800 Additional paid-in capital—Common 420,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $802,800 Retained earnings 40,000 Treasury stock, preferred, 100 shares (3,500) Total stockholders’ equity $? Required: Determine the following items based on Eldon's balance sheet. Round all calculations except per-share amounts to the nearest whole number; round per-share amounts to the nearest cent. 1. The number of shares of preferred stock issued 2. The number of shares of preferred stock outstanding 3. The average per-share sales price of the preferred stock when issued 4. The par value of the common stock 5. The average per-share sales price of the common stock when issued 6. The cost of the treasury stock per share 7. The…Joshua Corporation's stockholders' equity at December 31, 20x5 consisted of the following: 8% cumulative preference share, P50 par, authorized, issued, and outstanding 20,000 shares P1,000,000 Ordinary Shares P25 par; 200,000 shares authorized 2, 500,000 100,000 shares issued and outstanding Retained Earnings 400,000 Dividends on preferred have been paid through 20x4 but have not been declared for 20x5. Compute for the book value per ordinary share at December 31, 20x5. (Round- off answer to two decimal places)Intel's 12/31/2020 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 30,000 shares authorized; 20,000 shares issued Common stock, $10 par value, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding Paid-in capital in excess of par value - . preferred stock Paid-in capital in excess of par value - common stock Retained earnings Treasury stock (30,000 shares) Intel's total paid-in capital was O $47,960,000. O $48,590,000. O $47,330,000. O $28,060,000. $ 400,000 19,500,000 60,000 28,000,000 9,650,000 630,000