On January 1, 2024, Jaewoo Industries had outstanding 780,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. ⚫ On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $34. ⚫ At December 31, 2024, there were 28,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 28,000 shares of common stock at an exercise price of $30. ⚫ The market price of the common stock at year-end was $48. • During the year, the price of the common shares had averaged $40. • Net income was $920,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator ++ Denominator = Earnings per share =

On January 1, 2024, Jaewoo Industries had outstanding 780,000 common shares ($1 par) that originally sold for $30 per share, and 9,000 shares of 10% cumulative preferred stock ($100 par), convertible into 90,000 common shares. ⚫ On October 1, 2024, Jaewoo sold and issued an additional 16,000 shares of common stock at $34. ⚫ At December 31, 2024, there were 28,000 incentive stock options outstanding, issued in 2023, and exercisable after one year for 28,000 shares of common stock at an exercise price of $30. ⚫ The market price of the common stock at year-end was $48. • During the year, the price of the common shares had averaged $40. • Net income was $920,000. The tax rate for the year was 25%. Required: Compute basic and diluted EPS for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted Numerator ++ Denominator = Earnings per share =

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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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
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.
Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
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On December 31, 2023, Li-Wu Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2024, Li-Wu purchased 24,000 shares of common stock on the open market as treasury stock for $35 per share. Li-Wu sold 6,000 treasury shares on September 30, 2024, for $37 per share. Net income for 2024 was $180,905. Also outstanding during the year were fully vested incentive stock options giving key executives the option to buy 50,000 common shares at $40. The market price of the common shares averaged $39 during 2024. Required: Compute Li-Wu's basic and diluted earnings per share for 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Basic Diluted Earnings per share
On December 31, 2023, Li-Wu Company had 100,000 shares of common stock outstanding and 24,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2024, Li-Wu purchased 16,000 shares of common stock on the open market as treasury stock for $27 per share. Li-Wu sold 5,200 treasury shares on September 30, 2024, for $29 per share. Net income for 2024 was $172,905. Also outstanding during the year were fully vested incentive stock options giving key executives the option to buy 42,000 common shares at $32. The market price of the common shares averaged $31 during 2024. Required: Compute Li-Wu's basic and diluted earnings per share for 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculation. Round your answers to 2 decimal places. Basic Diluted Earnings per share
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On January 1, 2022, Hendrick Corporation had 1,000,000 shares of $2 par common stock authorized and 400,000 shares issued and outstanding. The following occurred during 2022: • March 1: Issued 200,000 new shares of common stock at $8 per share. • April 1: Declared and distributed a 10% stock dividend when the market value is $10 per share. • May 1: Purchased on the market 10,000 of its own outstanding shares as treasury stock for $15 per share. • July 1: Reissued the 10,000 treasury shares at $16. • August 1: Declared and distributed a 50% stock dividend. • October 1: Issued 200,000 new shares of common stock at $10 per share. • November 1: Declared and issued a 4-for-1 stock split. • December 1: Issued 200,000 new shares of common stock at $5 per share Required: Compute the weighted average number of shares to be used in computing earnings per share for 2022. CLEARLY show all calculations!
1. Theodore Company had 168,000 of ordinary shares issued and outstanding at January 1, 2020. On January 2 of the same year, the company issued 112,000 preference shares. During the year, the company issued declared and paid ₱588,000 cash dividend on the ordinary shares and ₱336,000 on the preference shares. Net income for the year was ₱2,100,000. What should be the basic earnings per share on 2020?
On December 31, 2023, Ainsworth, Incorporated had 760 million shares of common stock outstanding. B Twenty nine million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2024. ⚫ On April 30, 2024, Ainsworth purchased 30 million shares of its common stock as treasury stock. • Twelve million treasury shares were sold on August 31. B Ainsworth issued a 5% common stock dividend on June 12, 2024. ■ No cash dividends were declared in 2024. . For the year ended December 31, 2024, Ainsworth reported a net loss of $185 million, including an after-tax loss from discontinued operations of $490 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2024. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2024 and 2023 comparative income statements. Assume EPS was reported…
On December 31, 2023, Dow Steel Corporation had 650,000 shares of common stock and 305,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. ⚫ Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $450,000 and $74,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 64,000 common shares. . In keeping with its long-term share repurchase plan, 7,000 shares were retired on July 1. ⚫ Dow's net income for the year ended December 31, 2024, was $2,350,000. • The income tax rate is 25%. • Also, as a part of a 2023 agreement for the acquisition of Merrill Cable Company, another 26,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2025, if Merrill's 2025 net income is at least $550,000. ■ In 2024, Merrill's net income was $680,000. • As part of an incentive compensation plan, Dow granted incentive stock options to…