Problem 19-14 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9, 19-10] Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ $ X Answer is complete but not entirely correct. Earnings per share Numerator 400 520✓ + Denominator = 100 146 X = = 100 million 60 million $ 900 million $ $ 4.00 3.12 X

Problem 19-14 (Static) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9, 19-10] Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Common shares outstanding throughout the year Convertible preferred shares (convertible into 32 million shares of common) Convertible 8% bonds (convertible into 13.5 million shares of common) Park-Rao's net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raos paid dividends of $2 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Basic Diluted $ $ X Answer is complete but not entirely correct. Earnings per share Numerator 400 520✓ + Denominator = 100 146 X = = 100 million 60 million $ 900 million $ $ 4.00 3.12 X

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Current Attempt in Progress The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) $1,210,00 1,970,00 Diluted earnings per share $ 4,200,00 5,820,00 There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) 20% $25 per shar
Current Attempt in Progress The information below pertains to Crane Company for 2021. Net income for the year $1.210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,990,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 3,860,000 Common stock, $10 par value 5,880,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 72,400 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, eg. $2.55.) Diluted earnings per share
Required - In accordance with IAS 33 Earnings per share 3. Compute basic earnings per share for 2019 b. Compute diluted earnings per share for 201 c. State the Presentation and Disclosure requirements i The information below pertains to Rainfall ple for 2019. Net Income for the year 8% convertible bonds issued at par ($1,000 per bond); $2,000,000 each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% 6% convertible, cumulative preference shares, $100 par value; each share is convertible into 3 shares of ordinary shares. Ordinary shares, $10 par value Tax rate for 2019 $1,200,000 $4,000,000 $6,000,000 40% Average market price of ordinary shares $25 per share
The information below pertains to Metlock Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $1,230,000 $ 1,990,000 4,110,000 There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 68,200 shares of common stock at $20 per share. a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) 6,270,000 20% $25 per share
An entity had the following securities outstanding as of December 31, 2021: 10% convertible bonds payable, each P1,000 bond convertible into ten ordinary shares Ordinary share capital P100 par, 250,000 shares authorized, 100,000 shares issued Net income 4,000,000 10,000,000 5,000,000 Income tax rate 30% Requirement: A. Compute for the Basic earnings per share. B. Compute for the Diluted earnings per share.
View Policies Current Attempt in Progress Sunland Co. has 4770000 shares of common stock outstanding on December 31, 2024. An additional 204000 shares are issued on April 1, 2025, and 486000 more on September 1. On October 1, Sunland issued $5970000 of 8% convertible bonds. Each $1,000 bond is convertible into 40 shares of its common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, on December 31, 2025 are O 5085000 and 5085000. O 5865300 and 5297700. 5085000 and 5144700. 5085000 and 2982300.
Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) $ 30 Additional paid-in capital 3,097 23,722 (7,756) (369) $ 18,724 Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares Required: a. Suppose that FedEx now issues 4 million shares at $180 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 4 million shares at $180 per share? Complete this question by entering your answers in the tabs below. Required A Required B What would happen to the book value of common stockholders' equity if instead FedEx bought back 4 million shares at $180 per share? Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. Common shares ($0.10 par value per share)…
The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock 4 a. Compute basic earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share There were no changes during 2026 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. eTextbook and Media 1.65 $ $1,210,00 1,970,00 4,200,00 5,820,00 20% $25 per shar ▶
The information below pertains to Shamrock Company for 2021. Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,000,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,080,000 Common stock, $10 par value 6,130,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 74,200 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. Basic earnings per share $ (b) Compute diluted earnings per share for 2021. Diluted earnings per share $
Book value of common stockholders' equity of FedEx, May 31, 2020 (figures in $ millions) Common shares ($0.10 par value per share) Additional paid-in capital Retained earnings Treasury shares at cost Other Net common equity Note: Authorized shares (millions) Issued shares, of which: Outstanding shares Treasury shares Required: $ 38 3,094 23,719 (7,711) (366) $ 18,774 332 48 a. Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. b. What would happen to the book value of common stockholders' equity if instead FedEx bought back 7 million shares at $130 per share? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that FedEx now issues 7 million shares at $130 a share. Update the table below with the new values. Note: Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. Common shares ($0.10 par value per share) $ 0.7 909.3…