Question
In: Accounting
Computing EPS: Restricted Stock Awards West Inc. granted 5,000 shares of restricted common stock shares at...
Computing EPS: Restricted Stock Awards
West Inc. granted 5,000 shares of restricted common stock shares at the beginning of 2020 to company managers that will vest after 4 years of service. Net income for the year is $360,000, and 250,000 common shares were outstanding the entire year. The fair value of the shares on January 1, 2020, is $25 per share. The average market price of common shares in 2020 is $25 per share.
a. Compute basic earnings per share.
b. Compute diluted earnings per share.
Note: Round per share amounts to two decimal places.
| Net Income Available to Common Stockholders |
Weighted Avg. Common Shares Outstanding |
Per Share |
|
|---|---|---|---|
| Basic EPS | Answer | Answer | Answer |
| Diluted EPS | Answer | Answer | Answer |
Solutions
Expert Solution
Hope you understood the solution. If you have any doubt please leave your doubt in the comment section so that I can clarify your doubt.
Thank you.
ekkarill92 answered 1 year agoRelated Solutions
What is restricted stock? How do restricted stock awards differ from restricted stock units (RSUs)? Describe...
What is restricted stock? How do restricted stock awards differ
from restricted stock units (RSUs)? Describe how compensation
expense is determined and recorded for a restricted stock award
plan?
On May 1, 2018, Carlton Inc. issued 5,000 shares of common stock and 2000 shares of...
On May 1, 2018, Carlton Inc. issued 5,000 shares of common stock
and 2000 shares of preferred stock for a lump sum of $330,000. The
par value of the common stock was $.50 per share and the market
value $27.20 per share. The par value of the preferred stock was
$50 per share and the market value $102 per share. Prepare
the necessary journal entry to record stock issuance.
On January 4, of the Current Year Berta Inc. reacquired 5,000 shares of its common stock...
On January 4, of the Current Year Berta Inc.
reacquired 5,000 shares of its common stock at $100 per share. On
May 17 Berta Sold 4,000 of the reaquired shares at $120 per share.
The remaining 1,000 shares were sold at $98 per share on December
15.
REQUIRED:
1. Journalize the transaction of January 4, and December 15.
2.What is the balance in Paid-in Capital from sale of
treasury stock on December 31, of the current year?
3. Why might...
1.) Winnie the Pooh Inc. issues 5,000 shares of $2 par common stock for $75 a...
1.) Winnie the Pooh Inc. issues 5,000 shares of $2 par common
stock for $75 a share and 10,000 shares of $6 par preferred stock
for $88 dollars per share. Journalize the issuance of these
stocks:
2.) Winnie the Pooh Inc. the most generous of the companies
declares a $200,000 cash dividend on April 1st, 2020. The company
has 10,000 shares of $5 par common stock with a market value of $25
per share and 20,000 shares of $10 par...
Accounting for Restricted Stock Awards Geelong Technology (GT) is a software company based in Boston. Since...
Accounting for Restricted Stock Awards
Geelong Technology (GT) is a software company based in Boston.
Since January 1, 2015, the company has granted restricted stock to
its CEO at the beginning of each year to help boost future company
performance. Vesting for each award occurs if the CEO stays
employed at the company for a period of two years from the grant of
the award.
The par value of the stock is $1.
Grant Date
Number of shares...
Accounting for Restricted Stock Awards Geelong Technology (GT) is a software company based in Boston. Since...
Accounting for Restricted Stock Awards
Geelong Technology (GT) is a software company based in Boston.
Since January 1, 2015, the company has granted restricted stock to
its CEO at the beginning of each year to help boost future company
performance. Vesting for each award occurs if the CEO stays
employed at the company for a period of two years from the grant of
the award.
The par value of the stock is $1.
Grant Date
Number of shares...
A corporation issues 5,000 shares of common stock for $160,000. The stock has a stated value...
A corporation issues 5,000 shares of common stock for $160,000.
The stock has a stated value of $15 per share. What amount of
credit to Common Stock would the journal entry to record the stock
issuance include?
Select the correct answer.
$75,000
$85,000
$5,000
$160,000
A company granted compensation through restricted shares to four of its executives, with a market value...
A company granted compensation through restricted shares to four
of its executives, with a market value of $ 600,000 and a period of
service of four years. When granting the compensation plan, the
company made the following entry:
Deferred compensation 600,000
Common srock 30,000
Paid-in capital in excess of par value 570,000
In each of the first two years the company made the following
entry:
Compensation expense 150,000
Deferred compensation 150,000
During the third year, one of the executives resigned...
If a corporation issues 5,000 shares of $5 par value common stock for $ 90,000, the...
If a corporation issues 5,000 shares of $5 par value common
stock for $ 90,000, the journal entry would include a credit
to:
A.Common Stock for $ 90,000.
B.Common Stock for $ 65,000.
C.Paidminusin Capital in Excess of Parlong dashCommon for $
90,000.
D.Paidminusin Capital in Excess of Parlong dashCommon for $
65,000.
If a corporation issues 2,000 shares of $1 par value common
stock for $ 10,000, the journal entry would include a credit
to:
A.Common Stock for $...
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 16,800 shares of common stock outstanding...
Convertible Preferred Stock, Convertible Bonds, and EPS
Francis Company has 16,800 shares of common stock outstanding at
the beginning of 2019. Francis issued 2,100 additional shares on
May 1 and 1,400 additional shares on September 30. It also has two
convertible securities outstanding at the end of 2019. These
are:
Convertible preferred stock: 1,750 shares of 8.0%, $50 par,
preferred stock were issued on January 2, 2016, for $55 per share.
Each share of preferred stock is convertible into 2...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part A. Outline and explain all the VARIABLES and FACTORS that determine valuation and valuation analysis...
- Study the file polygon.h. It contains the header file for a class of regular polygons. Implement...
- what challenges can myths and stereotypes create for american indians?
- Date accuracy is very important because dates are used for discounts, payment terms and many reports....
- How many milliliters of concentrated hydrochloric acid solution (36.0% HCl by mass, density = 1.18 g/mL)...
- How does the rotating membership of the FOMC work? Why does the president of New York's...
- A gym owner is considering opening a location on the other side of town. The new...
ADVERTISEMENT