Given the following information for Wilco Inc. (who is subject to a 20% tax rate), compute 2022 ROA: Total Liabilities Total Stockholders' Equity Common Stock; $1 par value; 1,000,000 shares issued and outstanding 12/31/2021 & 12/31/2022 Preferred Stock; $10 par value; 10,000 shares issued and outstanding 12/31/2021 & 12/31/ 2022 Preferred Dividends Common Dividends Interest Expense Net Income (Consolidated) Non-Controlling Interest in Income 2022 $32,000,000 $18,000,000 $1,000,000 $100,000 $20,000 $80,000 $400,000 $10,000,000 $1,000,000 2021 $29,000,000 $19,000,000 $1,000,000 $100,000 $20,000 $80,000 $380,000 $9,500,000 $950,000

Given the following information for Wilco Inc. (who is subject to a 20% tax rate), compute 2022 ROA: Total Liabilities Total Stockholders' Equity Common Stock; $1 par value; 1,000,000 shares issued and outstanding 12/31/2021 & 12/31/2022 Preferred Stock; $10 par value; 10,000 shares issued and outstanding 12/31/2021 & 12/31/ 2022 Preferred Dividends Common Dividends Interest Expense Net Income (Consolidated) Non-Controlling Interest in Income 2022 $32,000,000 $18,000,000 $1,000,000 $100,000 $20,000 $80,000 $400,000 $10,000,000 $1,000,000 2021 $29,000,000 $19,000,000 $1,000,000 $100,000 $20,000 $80,000 $380,000 $9,500,000 $950,000

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 18P

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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?
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.
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.
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
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.
Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
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.
Bonita Industries had the following information in its financial statements for the years ended 2020 and 2021: Cash dividends for the year 2021 $ 9600 Net income for the year ended 2021 97700 Market price of stock, 12/31/20 9 Market price of stock, 12/31/21 11 Common stockholders’ equity, 12/31/20 1001000 Common stockholders’ equity, 12/31/21 1192000 Outstanding shares, 12/31/21 100300 Preferred dividends for the year ended 2021 14300 What is the payout ratio for Bonita Industries for the year ended 2021?
1. Using the information provided below, what is the share premium balance on December 31, 2021? The following are Lyca Company's equity accounts at December 31, 2020: • Ordinary share capital, par value P10; authorized 200,000 shares; issued and outstanding 120,000 shares. ............... P1,200,000 • Share premium........ ............... 180,000 • Retained earnings................ .............................. 720,000 . Lyca Company uses the cost method of accounting for treasury shares. The following transactions occurred in 2021: - Acquired 8,000 ordinary shares for P144,000. - Sold 6,500 treasury shares at P20 per share - Retired the remaining treasury shares a. P117,000 b. P168,000 c. P181,000 d. P193,000
Given the following information for Wilco Inc. (who is subject to a 10% tax rate), compute 2022 ROA: \table[[, 2022, 2021],[ Total Liabilities, $25,000,000, $23,000,000
On December 31, 2020, ZEN Inc. reported a net income of P2,000,000. The following data are provided by ZEN concerning its shareholders’ equity: Ordinary shares at P10/par, P1,000,000; Share premium, 500,000; Subscribed ordinary shares, 300,000; Subscription receivable collectible beyond one year, 50,000; Treasury shares at cost (P12/share), 300,000; Cumulative-participating preference shares – 10%, P2,000,000; and Outstanding preference shares 100,000. The dividends on preference shares are in arrears for two years before December 31, 2020. No dividends were on preference shares were declared on year 2020. What is the basic earnings per share for preference shareholders for the year ended December 31, 2020? a. P6.00 b. P2.00 c. None
The following data is available for Sheffield Service Corporation at December 31, 2020: Common stock, par $10 (authorized 100000 shares) Treasury Stock (at cost $15 per share) $413000 O 41300 O 50000 O 37700 O 48200 54000 Based on the data, how many shares of common stock are outstanding?