Jones Corp. had 120,000 shares outstanding all of year 8. During year 8, Jones paid dividends of $60,000 on its non-cumulative, convertible preferred stock.The convertible preferred shares may be exchanged for 20,000 of shares of common stock. The $4,000,000 face value, 6% convertible bonds (issued at par)are convertible into 120,000 shares of common stock. Net income for year 8 is $250,000 and the corporate tax rate is 40%.Security NameConvertible Proferred Shares6% Convertible BondsIssued at Par ValueO $1.29O $1.39O $1.58O $1.604Numerator DenominatorIf-Converted f-ConvertedMethodMethod$60,000$144,000What is diluted earnings per share for year 8720,000120,000Per ShareEffect$3.00$1.20

Answered: Jones Corp. had 120,000 shares…

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 10MC

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During Year 11, Pacilio Security Services experienced the following transactions: Paid the sales tax payable from Year 10. Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes). Issued 5,000 additional shares of the $5 par value common stock for $8 per share. Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share. Purchased $500 of supplies on account. Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase. After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable. Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. Billed $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were…
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