Scribd Logo
Upload

Welcome to Scribd!

  • 80 views

    SCH 19

    Uploaded by

    Vishal P Rao
    The document contains the solutions to multiple accounting problems involving earnings per share calculations. It provides the calculations for a company's earnings per share for three years between 2019-2021, taking into account factors such as net income, preferred dividends, changes in shares outstanding from events like stock splits, dividends, and share retirements. The earnings per share amounts calculated in the solutions are marked as correct.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    SCH 19

    Uploaded by

    Vishal P Rao
    80 views10 pages
    The document contains the solutions to multiple accounting problems involving earnings per share calculations. It provides the calculations for a company's earnings per share for three years between 2019-2021, taking into account factors such as net income, preferred dividends, changes in shares outstanding from events like stock splits, dividends, and share retirements. The earnings per share amounts calculated in the solutions are marked as correct.

    Original Title

    SCh19

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains the solutions to multiple accounting problems involving earnings per share calculations. It provides the calculations for a company's earnings per share for three years between 2019-2021, taking into account factors such as net income, preferred dividends, changes in shares outstanding from events like stock splits, dividends, and share retirements. The earnings per share amounts calculated in the solutions are marked as correct.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    80 views10 pages

    SCH 19

    Uploaded by

    Vishal P Rao
    The document contains the solutions to multiple accounting problems involving earnings per share calculations. It provides the calculations for a company's earnings per share for three years between 2019-2021, taking into account factors such as net income, preferred dividends, changes in shares outstanding from events like stock splits, dividends, and share retirements. The earnings per share amounts calculated in the solutions are marked as correct.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 10

    Student Name: Instructor

    Class: McGraw-Hill/Irwin
    Problem 19-05

    Requirement 1:
    WALTERS AUDIO VISUAL, INC.
    Total Compensation Cost
    ($ in millions, except "per option" amounts)

    At January 1, 2021, the estimated value of the award is:


    Estimated fair value per option $ 2
    Options granted 40
    Total compensation $ 80
    Correct!

    WALTERS AUDIO VISUAL, INC.


    General Journal
    ($ in millions)

    Account Debit Credit


    Requirement 2:
    Compensation expense 40
    Paid-in capital - stock options 40 «- Correct!
    Deferred tax asset 10
    Tax expense 10 «- Correct!

    Requirement 3:
    Compensation expense 40
    Paid-in capital - stock options 40 «- Correct!
    Deferred tax asset 10
    Tax expense 10 «- Correct!

    Requirement 4:
    Cash 320
    Paid-in capital - stock options 80
    Common stock (40 million shares at $1 par per share) 40
    Paid-in capital - excess of par 360 «- Correct!

    Income taxes payable 40


    Deferred tax asset 20
    Tax expense 20 «- Correct!

    Requirement 5:
    Compensation expense 40
    Paid-in capital - stock options 40 «- Correct!
    No deferred tax asset is recorded because an incentive plan does not provide the employer a
    tax deduction.

    Requirement 6:
    Cash 320
    Paid-in capital -stock options 80
    Common stock (40 million shares at $1 par per share) 40
    Paid-in capital - excess of par 360 «- Correct!
    No tax effect because an incentive plan does not provide the employer a tax deduction.
    No tax effect because an incentive plan does not provide the employer a tax deduction.
    Given Data P19-05:

    WALTERS AUDIO VISUAL, INC.

    $1 par common share options granted 40,000,000 shares


    Exercise price $ 8.00 per share
    Fair value $ 2.00 per option
    Income tax rate 25%
    Student Name: Instructor
    Class: McGraw-Hill/Irwin
    Problem 19-09

    RENN-DEVER CORPORATION
    Earnings (Net Loss) per Share

    2019
    Net Loss $ (160,500)
    Shares 1,855,000
    Net Loss Per Share $ (0.09)
    Correct!
    2020
    Net Income $ 2,240,900
    Shares at Jan. 1 1,855,000
    Retired Shares 27,500
    Earnings Per Share $ 1.23
    Correct!
    2021
    Net Income $ 3,308,700
    Shares at Jan. 1 1,745,000
    Stock Dividend Adjustment 1.02
    Earnings Per Share $ 1.86
    Correct!
    Given Data P19-09:

    RENN-DEVER CORPORATION
    Statements of Retained Earnings

    For the Years ended December 31, 2021 2020 2019


    Balance at beginning of year $ 6,794,292 $ 5,464,052 $ 5,624,552
    Net income (loss) 3,308,700 2,240,900 (160,500)
    Deductions:
    Stock dividend (34,900) shares 242,000
    Common shares retired, 9/30, (110,000 shares) 212,660
    Common stock dividends 889,950 698,000 -
    Balance at end of year $ 8,971,042 $ 6,794,292 $ 5,464,052

    At December 31, 2018, paid-in capital consisted of the following:


    Common stock, 1,855,000 shares at $1 par $ 1,855,000
    Paid-in capital - excess of par $ 7,420,000
    Student Name: Instructor
    Class: McGraw-Hill/Irwin
    Problem 19-10

    LOCK INTERTECHNOLOGY CORPORATION


    Earning Per Share
    ($ in millions, except per share amounts)

    2019
    Net Income $ 290
    Preferred Dividends $ 1.00
    Shares at Jan. 1 55
    New Shares 4.50
    Earnings Per Share $ 4.86
    Correct!
    2020
    Net Income $ 380
    Preferred Dividends $ 1.00
    Shares at Jan. 1 64
    Retired Shares 3.00
    Stock Split Adjustment 1.50
    Earnings Per Share $ 4.14
    Correct!
    2021
    Net Income $ 412
    Preferred Dividends $ 2.00
    Shares at Jan. 1 90
    Stock Dividend Adjustment 1.10
    New Shares 1.00
    Earnings Per Share $ 4.10
    Correct!
    Given Data P19-10:

    LOCK INTERTECHNOLOGY CORPORATION


    Statements of Shareholders' Equity
    For the Years Ended December 31, 2019, 2020, and 2021
    ($ in millions)

    Preferred Common Additional


    Stock, $10 Stock, $1 Paid-in Retained
    par par Capital Earnings
    Balance at Jan. 1, 2019 55 495 1,878
    Sale of preferred shares 10 470
    Sale of common shares, 7/1 9 81
    Cash dividend, preferred (1)
    Cash dividend, common (16)
    Net income 290
    Balance at Dec. 31, 2019 10 64 1,046 2,151

    Retirement of common shares, 4/1 (4) (36) (20)


    Cash dividend, preferred (1)
    Cash dividend, common (20)
    3-for-2 split as common stock dividend 8/12 30 (30)
    Net income 380
    Balance at Dec. 31, 2020 10 90 980 2,490

    10% common stock dividend, 5/1 9 90 (99)


    Sale of common shares, 9/1 3 31
    Cash dividend, preferred (2)
    Cash dividend, common (22)
    Net income 412
    Balance at Dec. 31, 2021 10 102 1,101 2,779
    ERTECHNOLOGY CORPORATION
    ments of Shareholders' Equity
    ded December 31, 2019, 2020, and 2021
    ($ in millions)

    Total
    Share-
    holders'
    Equity
    2,428
    480
    90
    (1)
    (16)
    290
    3,271

    (60)
    (1)
    (20)
    -
    380
    3,570

    -
    34
    (2)
    (22)
    412
    3,992
    Student Name: Instructor
    Class: McGraw-Hill/Irwin
    Problem 19-12

    DOW STEEL CORPORATION


    Earnings Per Share
    (amounts in thousands, except per share amount)

    Basic EPS
    Net Income $ 2,100
    Preferred Dividends $ 75
    Shares at Jan. 1 600
    New Shares 50
    Shares Retired 1
    Stock Dividend Adjustment 1.04
    Earnings Per Share $ 3.00
    Correct!
    Diluted EPS
    Net Income $ 2,100
    Preferred Dividends $ 75
    Shares at Jan. 1 $ 600
    New Shares $ 50
    Shares Retired 1
    Stock Dividend Adjustment 1.04
    Exercise of Options 2
    Earnings Per Share $ 2.99
    Correct!
    Given Data P19-12:

    DOW STEEL CORPORATION

    Common stock, 12/31/20 600,000 shares


    Preferred stock, 12/31/20 300,000 shares
    Common stock dividend issued 5/15/21 4%
    Common stock cash dividends paid, 12/15/21 $ 400,000
    Preferred stock cash dividends paid, 12/15/21 $ 75,000
    Common shares sold, 2/28/21 60,000
    Shares retired, 7/1/21 2,000
    Net income, 12/31/21 $ 2,100,000
    Income tax rate 25%

    Options granted and common share prices:


    Options
    Date granted granted Share price
    December 31, 2019 8,000 $24
    December 31, 2020 3,000 $33
    December 31, 2021 6,500 $32

    Average common stock market price, 2021 $32

    You might also like