Long-term debt Notes payable, 14% 8% convertible bonds payable 10% convertible bonds payable Total long-term debt WEBSTER CORPORATION BALANCE SHEET (PARTIAL) AT DECEMBER 31, 2022 Stockholder' equity 10% cumulative, convertible, preferred stock, par value $100, 100,000 shares authorized, 25,000 shares issued and outstanding Common stock, par value $1, 5,000,000 shares authorized, 500,000 shares issued and outstanding Additional Paid-in capital Retained earnings Total stockholders' equity $ 1,000,000 2,500,000 2.500,000 $6.000.000 7. Net income was $1,750,000 in 2022. 8. No bonds or preferred stock were converted during 2022. $ 2,500,000 500,000 2,000,000 9,000,000 $14.000.000 Notes and Assumptions December 31, 2022 1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per share. The average market price of Webster's common stock during 2022 was $30 per share. All options are still outstanding at the end of 2022. 2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each convertible bond is convertible into 40 shares of common stock. (Each bond has a face value of $1,000.) 3. The 10% cumulative, convertible preferred stock was issued at the beginning of 2022 at par. Each share of preferred is convertible into four shares of common stock. 4. The average income tax rate is 40%. 5. The 500,000 shares of common stock were outstanding during the entire year. 6. Preferred dividends were not declared in 2022. Required: Using the information above, compute Basic EPS and Diluted EPS for Webster Corporation for 2022.
Long-term debt Notes payable, 14% 8% convertible bonds payable 10% convertible bonds payable Total long-term debt WEBSTER CORPORATION BALANCE SHEET (PARTIAL) AT DECEMBER 31, 2022 Stockholder' equity 10% cumulative, convertible, preferred stock, par value $100, 100,000 shares authorized, 25,000 shares issued and outstanding Common stock, par value $1, 5,000,000 shares authorized, 500,000 shares issued and outstanding Additional Paid-in capital Retained earnings Total stockholders' equity $ 1,000,000 2,500,000 2.500,000 $6.000.000 7. Net income was $1,750,000 in 2022. 8. No bonds or preferred stock were converted during 2022. $ 2,500,000 500,000 2,000,000 9,000,000 $14.000.000 Notes and Assumptions December 31, 2022 1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per share. The average market price of Webster's common stock during 2022 was $30 per share. All options are still outstanding at the end of 2022. 2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each convertible bond is convertible into 40 shares of common stock. (Each bond has a face value of $1,000.) 3. The 10% cumulative, convertible preferred stock was issued at the beginning of 2022 at par. Each share of preferred is convertible into four shares of common stock. 4. The average income tax rate is 40%. 5. The 500,000 shares of common stock were outstanding during the entire year. 6. Preferred dividends were not declared in 2022. Required: Using the information above, compute Basic EPS and Diluted EPS for Webster Corporation for 2022.
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
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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Transcribed Image Text:Long-term debt
Notes payable, 14%
8% convertible bonds payable
10% convertible bonds payable
Total long-term debt
Must Show Work.
Retained earnings
Total stockholders' equity
WEBSTER CORPORATION
BALANCE SHEET (PARTIAL)
AT DECEMBER 31, 2022
Stockholder' equity
10% cumulative, convertible, preferred stock, par value $100;
100,000 shares authorized, 25,000 shares issued and outstanding
Common stock, par value $1, 5,000,000 shares authorized,
500,000 shares issued and outstanding
Additional Paid-in capital
$ 1,000,000
2,500,000
2,500,000
$6.000.000
4. The average income tax rate is 40%.
5. The 500,000 shares of common stock were outstanding during the entire year.
6. Preferred dividends were not declared in 2022.
$ 2,500,000
Notes and Assumptions
December 31, 2022
1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per
share. The average market price of Webster's common stock during 2022 was $30 per share.
All options are still outstanding at the end of 2022.
2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each
7. Net income was $1,750,000 in 2022.
8. No bonds or preferred stock were converted during 2022.
500,000
2,000,000
9,000,000
$14.000.000
convertible bond is convertible into 40 shares of common stock. (Each bond has a face value
of $1,000.)
3. The 10% cumulative, convertible preferred stock was issued at the beginning of 2022 at par.
Each share of preferred is convertible into four shares of common stock.
Required: Using the information above, compute Basic EPS and Diluted EPS for Webster Corporation for
2022.
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