Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 19, Problem 19.21E
EPS; convertible
• LO19–7, LO19–9
Compute Stanley’s basic and diluted earnings per share for the year ended December 31, 2018. Information from the financial statements of Ames Fabricators, Inc., included the following:
Ames’s net income for the year ended December 31, 2018, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2018.
Required:
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The accumulated profit account of One San Miguel Co, follows:
Date
Item
Debit
Credit
07/01/2020 Balance
48,500.00
08/31/2020 Dividends paid
12/31/2020 Net income for the year
20,000.00
32,400.00
04/01/2021 Premium on capital share
06/30/2021 Gain on treasury share
15,000.00
10,000.00
09/30/2021 Dividends declared
30,000.00
12/31/2021 Net Income for the year
45,100.00
Appraisal increase of land
30,000.00
Balance
131,000.00
181,000.00
181,000.00
What is the correct balance of Accumulated Profits on December 31, 2021?
Vishu
Required information
ISSUHTICOC OL INCW SNICS
Sovran Financial Corparation reported net income of $154 million for Year 1 (tax rate 25X
Its capital structure included the following:
Common Stock
Jan. 1
60 milion common shares were outstanding
Mar. 1
12 million new shares wee sold
60 million shares
+ 12 million new shares
Jan.
क. |
Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
0:00 / 2:07
720p
1x
C
Knowledge Check 01
On December 31, Year 1, the Reba Company had 120,000 shares of common stock issued and outstanding. On July 1, Year 2, the
company sold 23,000 additional shares for cash. Reba's net income for the year ended December 31, Year 2, was $568,000. What is
the basic earnings per share? (Round your answer to 2 decimal places.)
Basic earnings per share
Prev
of 18
Next >
IMG-1894.jpg
IMG-1895.jpg
Chapter 19 Solutions
Intermediate Accounting
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
Ch. 19 - The potentially dilutive effect of convertible...Ch. 19 - How is the potentially dilutive effect of...Ch. 19 - Prob. 19.13QCh. 19 - If stock options and restricted stock are...Ch. 19 - Wiseman Electronics has an agreement with certain...Ch. 19 - Prob. 19.16QCh. 19 - When the income statement includes discontinued...Ch. 19 - Prob. 19.18QCh. 19 - Prob. 19.19QCh. 19 - (Based on Appendix B) LTV Corporation grants SARs...Ch. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Stock options LO192 Under its executive stock...Ch. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Prob. 19.7BECh. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Performance-based options LO192 Refer to the...Ch. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - EPS; nonconvertible preferred shares LO197 At...Ch. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Prob. 19.3ECh. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - EPS; shares issued; stock dividend LO195, LO196...Ch. 19 - Prob. 19.13ECh. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; net loss; nonconvertible preferred stock;...Ch. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - Prob. 19.17ECh. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; stock dividend; nonconvertible preferred...Ch. 19 - EPS; shares issued; stock options LO196 through...Ch. 19 - EPS; convertible preferred stock; convertible...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Prob. 19.24ECh. 19 - Prob. 19.25ECh. 19 - EPS; concepts; terminology LO195 through LO1913...Ch. 19 - FASB codification research LO192 The FASB...Ch. 19 - Prob. 19.28ECh. 19 - Prob. 19.29ECh. 19 - Prob. 19.30ECh. 19 - Restricted stock units; cash settlement Appendix...Ch. 19 - Stock options; forfeiture; exercise LO192 On...Ch. 19 - Stock options; graded vesting LO192 January 1,...Ch. 19 - Stock options; graded vesting; measurement using a...Ch. 19 - Stock options; graded vesting; IFRS LO192, LO1914...Ch. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - EPS from statement of retained earnings LO194...Ch. 19 - EPS from statement of shareholders equity LO194...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; non convertible preferred stock; treasury...Ch. 19 - EPS; convertible preferred stock; convertible...Ch. 19 - EPS; antidilution LO194 through LO1910, LO1913...Ch. 19 - EPS; convertible bonds; treasury shares LO194...Ch. 19 - Prob. 19.17PCh. 19 - Prob. 19.18PCh. 19 - EPS; options; restricted stock; additional...Ch. 19 - Prob. 19.1BYPCh. 19 - Communication Case 192 Stock options; basic...Ch. 19 - Prob. 19.3BYPCh. 19 - Real World Case 195 Share-based plans; Walmart ...Ch. 19 - Prob. 19.6BYPCh. 19 - Prob. 19.7BYPCh. 19 - Analysis Case 198 EPS concepts LO194 through...Ch. 19 - Prob. 19.9BYPCh. 19 - Prob. 19.10BYPCh. 19 - Communication Case 1911 Dilution LO199 I thought...Ch. 19 - Real World Case 1912 Reporting EPS; discontinued...Ch. 19 - Analysis Case 1913 Analyzing financial statements;...Ch. 19 - Analysis Case 1915 Kelloggs EPS; PE ratio;...Ch. 19 - Prob. 19.16BYPCh. 19 - Prob. 1CCTCCh. 19 - Air FranceKLM Case IFRS LO199 Air FranceKLM (AF),...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…arrow_forwardPlz solve for A ,B and C !!arrow_forwardRevenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2021 due to the equity securities indicate whether increase or decrease?arrow_forward
- do E4.14arrow_forwardQuestion 18, P1-10 (book/static) Part 1 of 2 Interest versus dividend expense Derwent Ltd., has announced that the earnings before income and taxes is going to be £300,000 for the current year. Assuming corporate tax rate for Derwent Ltd., is a flat 30%, compute the firm's profit after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays £70,000 in interest. b. The firm pays £70,000 in preferred stock dividends. a. Complete the fragment of Derwent Ltd's income statement below to compute the firm's earnings after taxes and earnings available for common stockholders under condition (a). (Round to the nearest dollar.) EBIT Less: Interest expense Earnings before taxes Less: Taxes (30%) Earnings after taxes Less: Preferred dividends Earnings available for common stockholdersarrow_forwardAt the beginning of 2021, Southwest Airlines had the following amounts on their balance sheet: Amounts in millions Common Stock 10 APIC 2,690 Retained Earnings 9,165 Accumulated other comprehensive Income 265 During 2021, Southwest Airlines has net income of $478 million without considering any gains or losses from the sale of securities. During 2021, Southwest has a pension loss of $37 million and a currency translation gain of $16 million before taxes. They also sold debt securities held for sale that had an original cost of $46 million for $36 million (realized). At the beginning of 2021, the valuation allowance for securities sold was a credit of $5 million – remember to reverse. Southwest also paid dividends of $89 million and sold 10 million shares of $.10 par stock for $320 million in cash. Southwest’s tax rate is 30% Requirements: Prepare a journal entry for the sale of the debt securities during 2021 that had been left off the financial statements previously. Prepare a…arrow_forward
- What is the total dividend income during the year? a. 28,000 b. 16,000 c. 12,000 d. 40,000 e. None of the abovearrow_forwardpls answer and provide solution and explanationarrow_forward← → C #becausesneaker.... HW CH 17 v2.cengagenow.com/ilrn/take... Custom Order Appendix: Income statement and earnings per share for discontinued operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Apex Inc. Partial Income Statement For the Year Ended December 31 ☆ Check My Work * I Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. $670,000 $120,000* 60,000 40% b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Enter answers in dollars and cents, rounding to the nearest whole cent. Du + : ?arrow_forward
- Answer all questionsThe following information relating to Farasi ltd for the year ending 31st December 2019 has been availed. Profit before tax sh. 2,000,000Tax 600,000Preference dividends 300,000Ordinary dividends 500,000Ordinary share capital sh. 10 each 2,000,000Preference share capital sh. 20 each 1,000,000Share premium 800,000Retained earnings 3,000,000 In the year year 2020 the following took place. There was a bonus issue of 1:5 on 1/4/2020There was a rights issue of 1: 4 on 17/2020 at sh. 16. All the rights were taken up.An interim ordinary dividend of sh. 0.25 per share was declared on 12/10/2020.The dividend declared on 12/10/2020 was paid on 15/11/2020 Required:Compute the EPS for the year 2019.Prepare journal entries to record the transactions in 2020.arrow_forwardThe following information pertains to BTS Co. for the year.· Net assets, Jan.1, 2021- P1,008,480· Net assets, Dec. 31. 2021- P2,112,960· Share capital issued in 2021- P335,520· Dividends declared in 2021- P195,120How much is the profit (loss)?arrow_forwardplease make sure the answer is correct 100%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License