Your answer is incorrect. Try again. | |
Charles Austin of the controller’s office of Crane Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below.
1. | The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31, 2020, 2,000,000 shares had been issued and were outstanding. | |
2. | The per share market prices of the common stock on selected dates were as follows. |
Price per Share |
||
July 1, 2020 | $20.00 | |
January 1, 2021 | 21.00 | |
April 1, 2021 | 25.00 | |
July 1, 2021 | 11.00 | |
August 1, 2021 | 10.50 | |
November 1, 2021 | 9.00 | |
December 31, 2021 | 10.00 |
3. | A total of 703,200 shares of an authorized 1,176,000 shares of convertible preferred stock had been issued on July 1, 2020. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30. | |
4. | Crane Corporation is subject to a 20% income tax rate. | |
5. | The after-tax net income for the year ended December 31, 2021, was $11,860,000. |
The following specific activities took place during 2021.
1. | January 1—A 5% common stock dividend was issued. The dividend had been declared on December 1, 2020, to all stockholders of record on December 29, 2020. | |
2. | April 1—A total of 414,000 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2021. | |
3. | July 1—A 2-for-1 split of the common stock became effective on this date. The board of directors had authorized the split on June 1. | |
4. | August 1—A total of 277,200 shares of common stock were issued to acquire a factory building. | |
5. | November 1—A total of 21,600 shares of common stock were purchased on the open market at $9.00 per share. These shares were to be held as treasury stock and were still in the treasury as of December 31, 2021. | |
6. | Common stock cash dividends—Cash dividends to common stockholders were declared and paid as follows. | |
April 15—$0.30 per share | ||
October 15—$0.20 per share | ||
7. | Preferred stock cash dividends—Cash dividends to preferred stockholders were declared and paid as scheduled. |
(a) Determine the number of shares used to compute
basic earnings per share for the year ended December 31, 2021.
(Round answer to 0 decimal places, e.g.
$1,500.)
Number of shares to compute basic earnings per share |
(b) Determine the number of shares used to compute
diluted earnings per share for the year ended December 31, 2021.
(Round answer to 0 decimal places, e.g.
$1,500.)
Number of shares to compute diluted earnings per share |
(c) Compute the adjusted net income to be used as
the numerator in the basic earnings per share calculation for the
year ended December 31, 2021.
Adjusted net income | $ |
Ans:
Your answer is incorrect. Try again. Charles Austin of the controller’s office of Crane Corporation was...
Charles Austin of the controller’s office of Ayayai Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,120,000 shares of $10 par value common stock. As of December 31, 2020, 2,030,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...
Charles Austin of the controller’s office of Bonita Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 7,680,000 shares of $10 par value common stock. As of December 31, 2020, 1,920,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...
Charles Austin of the controller’s office of Sarasota Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,080,000 shares of $10 par value common stock. As of December 31, 2020, 2,020,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...
Problem 16-07 Charles Austin of the controller’s office of Waterway Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. Problem 16-07 Charles Austin of the controller's artice of Waterway Corporation was given the assignment of determining the basic and diluted eamings por share valuns for the year ending December 31, 2021. Austin has compiled the intormation listed below. 1. The...
Charles Austin of the controller's office of Coronado Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7,680,000 shares of $10 par value common stock. As of December 31, 2017, 1.920,000 shares had been issued and were outstanding 2. The per share market prices of the common stock on selected dates were as...
Charles Austin of the controller's office of Pharoah Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7.720,000 shares of $10 par value common stock. As of December 31, 2017, 1,930,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...
Problem 16-7 Charles Austin of the controller's office of Cheyenne Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7,800,000 shares of $10 par value common stock. As of December 31, 2017, 1.950,000 shares had been issued and were outstanding, 2. The per share market prices of the common stock on selected dates...
Please help me figure out parts A, B, and C. Please show calculations. P16.7 (LO 4, 5) Groupwork (Computation of Basic and Diluted EPS) Charles Austin of the controller's office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31,...
Problem 16-05 Your answer is incorrect. Try again. Amy Dyken, controller at Pharoah Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Pharoah’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Pharoah Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,020,000 9% convertible bonds payable 5,030,000 10% bonds payable 5,950,000 Total long-term debt $12,000,000...
Problem 16-05 Your answer is incorrect. Try again. Amy Dyken, controller at Pharoah Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Pharoah’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Pharoah Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,020,000 9% convertible bonds payable 5,030,000 10% bonds payable 5,950,000 Total long-term debt $12,000,000...