At December 31, 20X1, the financial statements of Clevenger Casting Corporation included the following:Net Income for 20X1$ 500 millionOrdinary shares Shares outstanding on January 1150 million sharesShares retired for cash on February 124 million sharesShares issued for cash on September 118 million shares2-for-1 split on July 23 Preference shares, nonconvertible with annual dividend of $7 million$ 70 millionPreference shares, convertible into 4 million shares* with annual dividend of $8 million$ 100 million *Adjusted for share split • Calculate basic EPS

Stock-split: When a company divide its stocks into parts, it is called a stock split. It increases…

Answered: At December 31, 20X1, the financial…

3rd Edition

ISBN:9781337788281

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

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Question

At December 31, 20X1, the financial statements of Clevenger Casting Corporation included the following:

Net Income for 20X1	$ 500 million
Ordinary shares
Shares outstanding on January 1	150 million shares
Shares retired for cash on February 1	24 million shares
Shares issued for cash on September 1	18 million shares
2-for-1 split on July 23
Preference shares, nonconvertible
with annual dividend of $7 million	$ 70 million
Preference shares, convertible into 4 million shares*
with annual dividend of $8 million	$ 100 million

*Adjusted for share split