Early in 2009, Feller Corporation was formed with authorization to issue 50,000 shares of $1 parvalue common stock. All shares were issued at a price of $8 per share. The corporation reportednet income of $82,000 in 2009, $25,000 in 2010, and $78,000 in 2011. No dividends were declaredin any of these three years. In 2010, the company purchased its own shares for $35,000 in the open market. In 2011, it reis-sued all of its treasury stock for $40,000. Instructionsa. Prepare the stockholders’ equity section of the balance sheet at December 31, 2011. Include asupporting schedule showing your computation of retained earnings at the balance sheet date.(Hint: Income increases retained earnings.)b. As of December 31, compute the company’s book value per share of common stock.c. Explain how the treasury stock transactions in 2010 and 2011 were reported in the company’sstatement of cash flows.

Early in 2009, Feller Corporation was formed with authorization to issue 50,000 shares of $1 parvalue common stock. All shares were issued at a price of $8 per share. The corporation reportednet income of $82,000 in 2009, $25,000 in 2010, and $78,000 in 2011. No dividends were declaredin any of these three years. In 2010, the company purchased its own shares for $35,000 in the open market. In 2011, it reis-sued all of its treasury stock for $40,000. Instructionsa. Prepare the stockholders’ equity section of the balance sheet at December 31, 2011. Include asupporting schedule showing your computation of retained earnings at the balance sheet date.(Hint: Income increases retained earnings.)b. As of December 31, compute the company’s book value per share of common stock.c. Explain how the treasury stock transactions in 2010 and 2011 were reported in the company’sstatement of cash flows.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter13: Earnings Per Share (eps)

Section: Chapter Questions

Problem 3R: During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on...

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Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.
Early in 2009, Tin Corporation was formed with authorization to issue 50,000 shares of $3 parvalue common stock. All shares were issued at a price of $10 per share. The corporation reportednet income of $150,000 in 2009, $80,000 in 2010, and $100,000 in 2011. No dividends weredeclared in any of these three years. In 2010, the company purchased its own shares for $30,000 in the open market. In 2011, it reis-sued all of its treasury stock for $40,000. Instructionsa. Prepare the stockholders’ equity section of the balance sheet at December 31, 2011. Include asupporting schedule showing your computation of retained earnings at the balance sheet date.(Hint: Income increases retained earnings.)b. As of December 31, compute the company’s book value per share of common stock.c. Explain how the treasury stock transactions in 2010 and 2011 were reported in the company’sstatement of cash flows.
On December 29, 2009, Bay Company was registered at the Securities and Exchange Commission with 100,000 authorized ordinary share of P100 par value. On the same date, 40,000 shares were sold and issued at P105 per share. On May 14, 2010, the corporation purchased 600 shares of its ordinary share capital at P110 per share. On September 15, 2010, 400 treasury shares were sold at P95. During 2010, the corporation realized a net income after tax of P830,000 and paid a cash dividend of P20,000. What is the total shareholders’ equity of Bay on December 31, 2010? A. P10, 602,000 B. P4, 982,000 C. P4, 802,000 D. P4, 352,000
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2016. Share issue costs were $1,500. One year from the issue date (July 1, 2017), the corporation retired 10% of the shares for $39,500. Required: 1. Prepare the journal entry to record the issuance of the shares. 2. Prepare the journal entry to record the declaration of a $2 per share dividend on December 1, 2016. 3. Prepare the journal entry to record the payment of the dividend on December 31, 2016. 4. Prepare the journal entry to record the retirement of the shares. (Note: You may wish to compare your solution to this problem with that of Problem 14–16, which deals with parallel issues of debt issue costs and the retirement of debt.)
Early in 2008, Septa, Inc., was organized with authorization to issue 1,000 shares of $100 par value preferred stock and 200,000 shares of $1 par value common stock. Five hundred shares of the pre-ferred stock were issued at par, and 80,000 shares of common stock were sold at $15 per share. The preferred stock pays a 10 percent cumulative dividend.During the first four years of operations (2008 through 2011), the corporation earned a total of$1,800,000 and paid dividends of 40 cents per share in each year on its outstanding common stock.Instructionsa. Prepare the stockholders’ equity section of the balance sheet at December 31, 2011. Include asupporting schedule showing your computation of the amount of retained earnings reported.(Hint: Income increases retained earnings, whereas dividends decrease retained earnings.)b. Are there any dividends in arrears on the company’s preferred stock at December 31, 2011?Explain your answer.c. Assume that interest rates increase steadily from 2008…
Cambridge Corp. has a single class of shares. As its year ended December 31, 2015, the company had 2,500,000 shares issued and outstanding. On the stock exchange, these shares are trading for $10 per share. In the company's accounts, these shares had a value of $30,000,000. The equity accounts also show $450,000 of contributed surplus from previous repurchases of shares. On January 15, 2016, Cambridge repurchased and cancelled 100,000 shares at a cost of $10 per share. Later in the year, on August 20, the company repurchased and cancelled a further 300,000 shares at $15 per share. Record the journal entries for August 20, 2016 under ASPE. Please round your final answer to the nearest dollar. Do not round intermediary answers. Do not use $ signs in your final answer. Enter $0 for any journal entries that do not apply. DR. Common shares - Type your answer here DR. Cash- Type your answer here DR. Contributed surplus - Type your answer here DR. Retained earnings - CR. Common shares - F12…
Sakura Co. was established on January 1, 2011. On January 1, 2011, Sakura issued 100, 000 common shares for $500,000. The par value of each share is $1. On July 15, Sakura purchased back 2,000 of its own common shares at $6 each. On December 31, 2011, the stock market price of Sakura's common shares was $9 each. What is the balance of Sakura's common stock account on Dec 31, 2011?
Cool Company has decided to take their company public on January 1, 2014. Cool company had 1,000 shares authorized. The following transactions occurred. e.) on January 1, 2016, cool company re-issued 1,000 shares of treasury stock at a price of $30 per share. Record the journal entry for this share reissuance. Question: Does the share reissuance in (e) (problem above) affect the income statement? Why or why not?
before any dividends are paid on the common stock. During its first five years of business (2011 through 2015), the company earned income totaling $3,700,000 and paid dividends of 50 cents per share each year on the common stock outstanding. On January 2, 2013, the company purchased 20,000 shares of its own common stock in the open market for $400,000. On January 2, 2015, it reissued 10,000 shares of this treasury stock for $250,000. The remaining 10,000 were still held in treasury at December 31, 2015. instructions a. Prepare the stockho!ders' equity section of the balance sheet for Herndon Industries at December 31, 2015. Include supporting schedules showing (1) your computation of any paid- in capital on treasury stock and (2) retained earnings at the balance sheet date. (Hint: Income increases retained earnings, whereas dividends reduce retained earnings. Dividends are not paid on shares of stock held in treasury.) b. As of December 31, compute Herndon's book value per share of…
C Inc., is authorized by its charter to issue 10,000 shares of $ 10 par common stock. On 3/1/2009, the first issuance of common stock was made, 2000 shares for $ 12 each. On 2/1/2010, 3000 additional shares were issued for $ 14. On 6/1/2010, 1200 of the outstanding shares were repurchased by the corporation for $ 11 each, but 200 of them were reissued the next day at a price of $ 15 each. Like most corporations, C uses the cost method to account for any treasury stock. How many shares of common stock are outstanding now? If a $ 2 per share dividend were declared today, how many dollars would the corporation need to pay it? How much gain would the corporation recognize on these common stock transactions? How much additional paid in capital (total Paid in Capital on Common or Treasury Stock) would the corporation have?
C Inc., is authorized by its charter to issue 10,000 shares of $ 10 par common stock. On 3/1/2009, the first issuance of common stock was made, 2000 shares for $ 12 each. On 2/1/2010, 3000 additional shares were issued for $ 14. On 6/1/2010, 1200 of the outstanding shares were repurchased by the corporation for $ 11 each, but 200 of them were reissued the next day at a price of $ 15 each. Like most corporations, C uses the cost method to account for any treasury stock. 1. How many shares of common stock are outstanding now? 2. If a $ 2 per share dividend were declared today, how many dollars would the corporation need to pay it? 3. How much gain would the corporation recognize on these common stock transactions? 4. How much additional paid in capital (total Paid in Capital on Common or Treasury Stock) would the corporation have? (first 3 requirements is solved. I need answer No. 4 requirement)