Question

In: Accounting

Please Answer All of Them Please ! 1. Presented below is the stockholders' equity section of...

Please Answer All of Them Please !

1. Presented below is the stockholders' equity section of Coronado Industries at December 31, 2020:

Common stock, par value $20; authorized 75,000 shares;
issued and outstanding 46000 shares

$ 920000
Paid-in capital in excess of par value

353000
Retained earnings

508000

$1781000


During 2021, the following transactions occurred relating to stockholders' equity:

2900 shares were reacquired at $28 per share.
3400 shares were reacquired at $35 per share.
1700 shares of treasury stock were sold at $31 per share.

For the year ended December 31, 2021, Coronado reported net income of $449000. Assuming Coronado accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2021, balance sheet?

a

 $2075100.

b

 $1633500.

c

 $2078800.

d

 $2082500.

2. Sheridan Company, has 4150000 shares of common stock outstanding on December 31, 2020. An additional 809000 shares of common stock were issued on April 1, 2021, and 410000 more on July 1, 2021. On October 1, 2021, Sheridan issued 19100, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively?

a

 5357250 and 6157250

b

 4961750 and 4961750

c

 4961750 and 5057250

d

 4961750 and 5357250

Solutions

Expert Solution

1. Answer: Option D

Common stock outstanding before repurchase = 46,000

Common stock outstanding after repurchase = 46,000 - 2,900 - 3,400 = 39,700

Thus amount of common stock at $20 par value = 39,700 * 20 = $794,000

Amount of excess paid-in capital used for repurchase of 2,900 shares = 2,900 * ($28 - $20) = $23,200

Amount of excess paid-in capital used for repurchase of 3,400 shares = 3,400 * ($35 - $20) = $51,000

Balance of paid-in capital in excess of par value after repurchase = $353,000 - $23,200 - $51,000 = $278,800

Balance of treasury stock = 1,700 * 31 = $52,700

Retained earnings = Opening amount of retained earnings + Net Income

= $508,000 + $449,000

= $957,000

Thus amount of stockholders' equity = $794,000 + $278,800 + $52,700 + $957,000 = $2,082,500

2. Answer: Option C

Common stock outstanding for basic EPS = 4,150,000 + (809,000 * 9/12) + (410,000 * 6/12) = 4,961,750

Common stock outstanding for diluted EPS = 4,961,750 +  (19,100 * 20 * 3/12) = 5,057,250

ekkarill92 answered 3 weeks ago
Next > < Previous

Related Solutions

Stockholders’ Equity Section Use the information presented in the table and shown below to prepare the...
Stockholders’ Equity Section Use the information presented in the table and shown below to prepare the stockholders’ equity section of ABC Company's balance sheet at December 31, 2017. At December 31, 2017, ABC Company had the following number of common and preferred shares. Common Preferred Authorized 600,000 60,000 Issued 200,000 10,000 Outstanding 190,000 10,000 The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share.
Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock,...
Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock, par value $20; authorized 75,000 shares;       issued and outstanding 45,000 shares                                        $   900,000 Paid-in capital in excess of par value                                                      350,000 Retained earnings                                                                                   300,000                                                                                                             $1,550,000 During 2015, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per...
Presented below is the stockholders' equity section of Concord Corporation at December 31, 2020: Common stock,...
Presented below is the stockholders' equity section of Concord Corporation at December 31, 2020: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45600 shares $ 912000 Paid-in capital in excess of par value 351000 Retained earnings 498000 $1761000 During 2021, the following transactions occurred relating to stockholders' equity: 3200 shares were reacquired at $29 per share. 3500 shares were reacquired at $34 per share. 1700 shares of treasury stock were sold at $31 per share. For the...
The stockholders’ equity section of Indigo Corporation’s balancesheet at December 31 is presented here.Balance...
The stockholders’ equity section of Indigo Corporation’s balance sheet at December 31 is presented here.Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 11,800 shares authorized, 7,100 shares issued and outstanding   $ 710,000Common stock, no par, 725,000 shares authorized, 555,000 shares issued                          1,665,000Total paid-in capital                                                       ...
1. All of the following normally are found in a corporation's stockholders' equity section except Select...
1. All of the following normally are found in a corporation's stockholders' equity section except Select one: a. Stock Dividend Distributable b. Cash Dividend Payable c. Paid-in Capital in Excess of Par Value d. Retained Earning 2. All of the following normally are found in a corporation's stockholders' equity section except Select one: a. Stock Dividend Distributable b. Cash Dividend Payable c. Paid-in Capital in Excess of Par Value d. Retained Earning 3. Jostens Co. had 200,000 shares of common...
please answer all of them The map of the lac operon and repressor gene is presented...
please answer all of them The map of the lac operon and repressor gene is presented    here:                                                 I     POZYA P is the promoter; O is the operator; Z encodes ß-galactosidase; Y encodes lactose permease; A encodes a transacetylase. The genotypes of merodiploids are shown below.  For each one, choose the correct phenotype from the table below.  (The same phenotype can be chosen for more than one genotype) PHENOTYPE                          ß-Galactosidase             No lactose                                with lactose A)                    -                                               + B)                    -                                               - C)                    +                                              + D)                    +                                              - I--P+O+Z+/I+P--O+Z-- Select one: a. A b. B...
The stockholders’ equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) ($...
The stockholders’ equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) ($ and shares in thousands) Stockholders' equity: Preferred stock, $1 par value $ 4,200 Common stock, $1 par value 12,000 Additional paid-in capital 262,200 Total paid-in capital 278,400 Retained earnings 270,000 Treasury stock, 10,000 common shares (140,000 ) Total stockholders' equity $ 408,400 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands. Required:...
The stockholders’ equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) ($...
The stockholders’ equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) ($ and shares in thousands) Stockholders' equity: Preferred stock, $1 par value $ 5,300 Common stock, $1 par value 23,000 Additional paid-in capital 728,600 Total paid-in capital 756,900 Retained earnings 281,000 Treasury stock, 10,000 common shares (250,000 ) Total stockholders' equity $ 787,900 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands. Required:...
The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders'...
The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders' equity    Paid-in capital       Common stock, $10 par value, 490,000 shares authorized;       320,000 issued and outstanding $3,200,000    Paid-in capital in excess of par 1,300,000          Total paid-in capital 4,500,000    Retained earnings 870,000          Total stockholders' equity $5,370,000 During 2020, the following stock transactions occurred: Jan. 18 Issued 88,000 shares of common stock at $22 per share. Aug. 20 Purchased 29,000 shares of Marigold Corp. common stock at...
The stockholders’ equity section of K Inc. at the beginning of the current year appears below....
The stockholders’ equity section of K Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 944,000 shares, 303,000 shares issued and outstanding $3,030,000 Paid-in capital in excess of par—common stock 549,000 Retained earnings 531,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 103,000 rights. Ten rights are needed to buy one share of stock at $32. The rights were void after 30 days. The market price...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT