Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 20, Problem 20.6BE
Compute Weighted-Average Number of Shares Outstanding with a Stock Dividend. Using the information provided in BE20-5, compute the weighted-average number of common shares outstanding for Elmwood Excavation Consultants assuming that the company implemented a 10% stock dividend on December 1.
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Explain how to calculate the after the stock dividend for the below problem.
At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:
On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $15 per share. The market value of the stock on April 30 was $18 per share.
For comparative purposes, prepare the Stockholders’ Equity section of the balance sheet immediately before the stock dividend and immediately after the stock dividend.
Before Stock Dividend
After Stock Dividend
Contributed capital:
Common stock
$360,000
Additional paid-in capital
120,000
Retained earnings
580,000
Total stockholders’ equity
$1,060,000
$0
The following information was extracted from the records of Cascade Company at the end of the fiscal yea
were completed:
Common stock ($0.01 par value; 230,000 shares authorized, 55,500 shares
issued, 53,500 shares outstanding)
Additional paid-in capital
Dividends declared and paid during the year
Retained earnings at the end of the year
Treasury stock at cost (2,000 shares)
Net income
Current stock price
Required:
1. Prepare the stockholders' equity section of the balance sheet at the end of the fiscal year.
2. Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Note: Do not round your intermediate calculations. Round Dividend yield ratio to 2 decimal places.
Dividend yield ratio
Number of shares
%
$ 555
459,000
23,500
315,000
(16;500)
$ 96,500
$ 10
>
Ecker Company reports $1,800,000 of net income and declares $252,000 of cash dividends on its preferred stock for the year. At
year-end, the company had 280,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders?
Net income
To preferred stockholders
Net income available to common stockholders
2. What is the company's basic EPS?
Basic Earnings per Share
Choose Numerator:
Choose Denominator:
Basic Earnings per Share
Basic earnings per share
Chapter 20 Solutions
Intermediate Accounting
Ch. 20 - Prob. 20.1QCh. 20 - Prob. 20.2QCh. 20 - If-Converted Method. Does the if-converted...Ch. 20 - Diluted EPS. If all potentially dilutive...Ch. 20 - Diluted EPS. Can diluted earnings per share on...Ch. 20 - Diluted EPS, Convertible Debt, and Preferred...Ch. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - Prob. 20.9QCh. 20 - EPS Disclosures. is an entity required to present...
Ch. 20 - Prob. 20.11QCh. 20 - Hutchins Company had 200,000 shares of common...Ch. 20 - Prob. 20.2MCCh. 20 - Prob. 20.3MCCh. 20 - Prob. 20.4MCCh. 20 - Refer to the information about Hutchins Company in...Ch. 20 - Prob. 20.6MCCh. 20 - Prob. 20.1BECh. 20 - Prob. 20.2BECh. 20 - Computing Income for Basic EPS. Russo Watches, Ltd...Ch. 20 - Prob. 20.4BECh. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Compute Weighted-Average Number of Shares...Ch. 20 - Prob. 20.7BECh. 20 - Prob. 20.8BECh. 20 - Prob. 20.9BECh. 20 - Prob. 20.10BECh. 20 - Prob. 20.11BECh. 20 - Computing Basic and Diluted EPS, Options. Nicks...Ch. 20 - Computing Diluted EPS, Convertible Debt. Axelon...Ch. 20 - Computing Basic and Diluted EPS, Preferred Stock....Ch. 20 - Computing Weighted-Average Number of Common Shares...Ch. 20 - Prob. 20.3ECh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.5ECh. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible Bonds...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Options,...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.12ECh. 20 - Prob. 20.1PCh. 20 - Prob. 20.2PCh. 20 - Computing Basic and Diluted EPS. Convertible...Ch. 20 - Prob. 20.4PCh. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Computing Basic and Diluted EPS, Convertible...Ch. 20 - Prob. 20.7PCh. 20 - Prob. 20.8PCh. 20 - Prob. 1JCCh. 20 - Prob. 1FSCCh. 20 - Prob. 1SSCCh. 20 - Basis for Conclusions Case 1: Antidilutive...Ch. 20 - Basis for Conclusions Case 2: Treasury Stock...
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