RR Warrants exercisable at $20 each to obtain 30,000 shares of common stock were outstandingduring a period when the average market price of the common stock was $25. Application ofthe treasury stock method for the assumed exercise of these warrants in computing dilutedearnings per share will increase the weighted average number of outstanding shares byO 30,000.O 24,000.O 6,000.O 7,500.

Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…

Answered: Warrants exercisable at $20 each to…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 11QE

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Treasury stock that had been purchased for $3,908 last month was reissued this month for $5,262. The journal entry to record the reissuance would include a credit to a.Paid-In Capital from Sale of Treasury Stock for $3,908 b.Paid-In Capital in Excess of Par - Common Stock for $3,908 c.Treasury Stock for $1,354 d.Paid-In Capital from Sale of Treasury Stock for $1,354
(EPS with Warrants) Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.Instructions(a) Are the warrants dilutive?(b) Compute basic earnings per share.(c) Compute diluted earnings per share.
Warrants exercisable at P20 each to obtain 20,000 shares of common stock were outstanding during a period when the average and year-end market price of the common stock was P25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted-average number of outstanding common shares by Choices; 20,000. 16,667. 16,000. 4,000.
Treasury stock that had been purchased for $4,166 last month was reissued this month for $5,455. The journal entry to record the reissuance would include a credit to a.Treasury Stock for $1,289 b.Paid-In Capital from Sale of Treasury Stock for $4,166 c.Paid-In Capital from Sale of Treasury Stock for $1,289 d.Paid-In Capital in Excess of Par - Common Stock for $4,166
When a company issues 27,000 shares of $5 par value common stock for $50 per share, the journal entry for this issuance would include: Multiple Choice A credit to Common Stock for $1,350,000. A credit to Additional Paid-in Capital for $1,215,000. A debit to Additional Paid-in Capital for $135,000. A debit to Cash for $135,000.
Toronto, Inc. issued 4,000 shares of $100 par preferred stock at $155 a share. Each share of stock has a warrant attached to it that allows the holder to purchase one share of $20 par value common stock at $50. Shortly after the preferred stock was issued, the stock sold for $150 ex-rights, and the warrants sold for $10 each. Required: a. Prepare the journal entry to record the issuance of the preferred stock. b. Prepare the journal entry to record the exercise of 3,200 of the warrants. c. Prepare the journal entry to record the expiration of the remaining 800 warrants.
When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal entry for this issuance would include: Multiple Choice A credit to Additional Paid-in Capital for $1,296,000. A debit to Cash for $144,000. A credit to Common Stock for $1,440,000. A debit to Additional Paid-in Capital for $144,000.
A corporation issues 5,000 shares of common stock for $62,000. The stock has a stated value of $10 per share. The entry to journalize the stock issuance would include a credit to Common Stock for a. $50,000. b. $62,000. c. $5,000. O d. $25,000.
1. Record the JOURNAL ENTRIES: Entries: A. Issued 3500 shares of $10 par common stock at $11, receiving cash. B. Issued $ 70000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 11200 shares of common stock were outstanding. D. Paid cash dividend from (c) above. E. Purchased 4200 shares of Jones Company for $10 per share, plus $2100 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the (6 points) market price was $ 25 per share. There were 11200 Shares outstanding. G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually. I. Purchased 210 shares of treasury common stock for $12 per…
A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred stock for a lump sum of $236,000. At the issuance, the market price of the common shares is $80 each and market price of the preferred is $300 each. In the journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of Par – Common Stock?
What is included in the journal entry to record the repurchase of 300 common shares to hold them in treasury? Assume the average issue price of the outstanding shares is $10. a. A debit to Cash for $3,000 b. A credit to Treasury Shares for $3,000 C. A debit to Common Shares for $300 d. A debit to Common Shares for $3,000
A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be ________.

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