Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the Income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (l.e., 5,500,000 should be entered as 5.50).)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years
ending December 31, 2019, 2020, and 2021.
Balance at January 1, 2019
sale of preferred shares
sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2019
Retirement of common shares, 4/11
Cash dividend, preferred
Cash dividend, common
3-for-2 split effected in the form of a
common stock dividend, 8/12
Net income
Balance at December 31, 2020
18% common stock dividend, 5/1
sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2021
Year
2019
2020
2021
LOCKE INTERTECHNOLOGY CORPORATION
statements of shareholders' Equity
For the Years Ended Dec. 31, 2019, 2020, and 2021
($ in millions)
Numerator / Denominator = Earnings per share
1
1
1
=
Preferred
stock,
$10 par
12
12
12
$12
Common
stock,
$1 par
80
$
11
91
(4)
43.5
130.5
13.05
3
$146.55
Additional
Paid-in
Capital
530
$
480
81
1,091
(36)
(43.5)
1,011.5
130
38
$1,179.5
Retained
Earnings
$ 1,892
(4)
(18)
310
2,180
(21)
(22)
410
2,543
(143.05)
(3)
(29)
426
$2,793.95
Required:
Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and
compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and
2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2
decimal places (l.e., 5,500,000 should be entered as 5.50).)
Total
Shareholders'
Equity
$ 2,502
492
92
(4)
(18)
310
3,374
(61)
(4)
(22)
410
3,697
41
(3)
(29)
426
$ 4,132
Transcribed Image Text:Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Balance at January 1, 2019 sale of preferred shares sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/11 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 18% common stock dividend, 5/1 sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 Year 2019 2020 2021 LOCKE INTERTECHNOLOGY CORPORATION statements of shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Numerator / Denominator = Earnings per share 1 1 1 = Preferred stock, $10 par 12 12 12 $12 Common stock, $1 par 80 $ 11 91 (4) 43.5 130.5 13.05 3 $146.55 Additional Paid-in Capital 530 $ 480 81 1,091 (36) (43.5) 1,011.5 130 38 $1,179.5 Retained Earnings $ 1,892 (4) (18) 310 2,180 (21) (22) 410 2,543 (143.05) (3) (29) 426 $2,793.95 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (l.e., 5,500,000 should be entered as 5.50).) Total Shareholders' Equity $ 2,502 492 92 (4) (18) 310 3,374 (61) (4) (22) 410 3,697 41 (3) (29) 426 $ 4,132
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