Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions.The following disclosure note appeared in the company's 2024 annual report:Note 5. Convertible Preferred Stock (in part):The Company has the following Convertible Preferred Stock outstanding as of September 2024:Date of issuance:Optionally redeemable beginning:Par value (gross proceeds):Number of shares:Liquidation preference per share:Conversion price per share:Number of common shares in which to be converted:Dividend rate:The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number ofpreferred shares being converted times a fraction equal to $25 divided by the conversion price. The conversion prices for thePreferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on theCommon Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as, and if declared by the Board ofDirectors, on March 31, June 30, September 30, and December 31 of each year.The Preferred Stock is optionally redeemable by the Company beginning on various dates, as listed above, at redemption prices equalto 120% of the liquidation preference. The redemption prices decrease 1% annually thereafter until the redemption price equals theliquidation preference, after which date it remains the liquidation preference.Required:1. What amount of dividends is paid annually to a preferred shareholder owning 250 shares of the Series A preferred stock?2. If dividends are not paid in 2025 and 2026, but are paid in 2027, what amount of dividends will the shareholder receive?3. If the Investor chooses to convert the shares in 2025, how many shares of common stock will the investor receive for their 250shares?4. If Ozark chooses to redeem the shares on June 18, 2025, what amount will the investor be paid for their 250 shares?Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Liquidation preferenceRedemption Percentage (%)Redemption price, June 18, 2025Required 1 Required 2Required 3If Ozark chooses to redeem the shares on June 18, 2025, what amount will the investor be paid for their 250 shares?Note: Round "Per Share Amounts" to 2 decimal places except percentage values.S5)June 17, 2021June 18, 2023$ 5,500,000220,000$ 25$ 32.66168,4016.848%SRequired 4Per ShareAmounts25.00106 x %Total 250shares30.00 $ 7,350

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Required: 1. What amount of dividends is paid annually to a preferred shareholder owning 250 shares of the Series A preferred stock? 2. If dividends are not paid in 2025 and 2026, but are paid in 2027, what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2025, how many shares of common stock will the Investor receive for their 250 shares?

Required: 1. What amount of dividends is paid annually to a preferred shareholder owning 250 shares of the Series A preferred stock? 2. If dividends are not paid in 2025 and 2026, but are paid in 2027, what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2025, how many shares of common stock will the Investor receive for their 250 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 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company’s 2021 annual report: Note 5. Convertible Preferred Stock (in part):The Company has the following Convertible Preferred Stock outstanding as of September 2021: Date of issuance: June 17, 2018 Optionally redeemable beginning: June 18, 2020 Par value (gross proceeds): $ 2,500,000 Number of shares: 100,000 Liquidation preference per share: $ 25.00 Conversion price per share: $ 30.31 Number of common shares in which to be converted: 82,481 Dividend rate: 6.785 % The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark’s common stock equal to the number of preferred shares being converted times a fraction equal to $25.00 divided by the conversion price. The conversion prices for the Preferred Stock are subject to…
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2018 annual report: E 18-8 Reporting preferred shares • LO18-4, LO18–7 Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: June 17, 2015 Optionally redeemable beginning: Par value (gross proceeds): Number of shares: June 18, 2017 $2,500,000 Liquidation preference per share: Conversion price per share: Number of common shares in which to be 100,000 $25.00 $30.31 converted: 82,481 Dividend rate: 6.785% The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $25.00 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary…
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2021 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2021: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted: Dividend rate: June 17, 2018 June 18, 2020 $1,200,000 120,000 $ 10 13.26 90,497 6.690% The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $10 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends…
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
The equity section of Gannon Oilfield Corporations balance sheet at December 31,2019 is shown below: Preferred Share Authorized -- 100 shares Issued and Outstanding- 64 shares $3,456 Common shares Authorized-- 2,000 shares Issued and Outstanding- 800 shares $1,680 Retained Earnings $600 Required: a. What is the average price received for each issued preferred share? b. What is the average price received for each issued common share? c. What is the total contributed capital of the company?
Assume that the following data relative to Wildhorse Company for 2021 is available: Net Income Transactions in Common Shares Jan. 1, 2021, Beginning number Mar. 1, 2021, Purchase of treasury shares June 1, 2021, Stock split 2-1 Nov. 1, 2021, Issuance of shares 6% Cumulative Convertible Preferred Stock Sold at par, convertible into 180,000 shares of common (adjusted for split). Stock Options Exercisable at the option price of $25 per share. Average market price in 2021, $30 (market price and option price adjusted for split). Change Basic earnings per share $ (72,000) 668,000 222,000 $2,890,000 Cumulative 740,000 668,000 1,336,000 1,558,000 $900,000 90,000 shares Compute the basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. 52.75.)
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.
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?
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.
Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
Entity A invested in 222,000 shares of a listed company on 1 November 2019 at a cost of $4.25 per share. On 31 December 2019, the shares have a market value of $4.73. The shares are held for trading. The end of the reporting period is 31 December. REQUIRED: (1) Measure the gain or loss of remeasurement of the shares recognised in the Statement of Profit or Loss on 31 December 2019. (2) Measure the value of the shares recognised in the Statement of Financial Position on 31 December 2019.
(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: 2020 2019 Preferred shares classified as equity $145,000 $145,000 Common shares: 9,000 shares in 2020, 10,000 shares in 2019 142,000 160,000 Contributed surplus—reacquisition of common shares 3,500 –0– Cash dividends—preferred 6,250 6,250 Stock dividends—common 14,000 –0– Retained earnings (balance after closing entries) 300,000 240,000 At December 31, 2020, the following information is available: Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000.During 2020, 1,000 common shares were issued as a stock dividend.Mandrich…