Question

Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30,...

Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 58,000 shares of common stock for cash. Paul also had 15,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 7%, and is convertible into 3 shares of common for each share of preferred. Paul also had 600, 9%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $400,000 with a 40% tax rate. Common shareholders received $3.00 per share dividends after preferred dividends were paid in 2021.

Required:
Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)

Earning per share
Basic
Diluted
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hit the LIKE Button.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Paul sold 45,000 shares of common stock for cash. Paul also had 8,500 shares of convertible preferred stock outstanding throughout 2018. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 470, 7%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 30 shares of common stock. The...
Abby Company had 150,000 shares of common stock outstanding on January 1, 2018. On September 30,...
Abby Company had 150,000 shares of common stock outstanding on January 1, 2018. On September 30, 2018, Abby sold 30,000 shares of common stock for cash. Abby also had 100, 8%, convertible bonds outstanding throughout 2018. Each $1,000 bond is convertible into 20 shares of common stock. The bonds sold originally at face value. The company also had 10,000 executive stock options outstanding that allowed executives to purchase shares of stock for $11.00. The average share price for the year...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 28,000 shares...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 28,000 shares of 6%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Jackson purchased 22,000 shares of common stock on the open market as treasury stock for $33 per share. Jackson sold 5,800 treasury shares on September 30, 2021, for $35 per share. Net income for 2021 was $178,905. Also outstanding during the year were fully vested incentive stock options giving key executives the...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 36,000 shares...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 36,000 shares of 5%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Jackson purchased 30,000 shares of common stock on the open market as treasury stock for $41 per share. Jackson sold 6,600 treasury shares on September 30, 2021, for $43 per share. Net income for 2021 was $186,905. Also outstanding during the year were fully vested incentive stock options giving key executives the...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1,...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 55,000 shares for cash. On January 1, 2021, XYZ issued 25,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2021, XYZ paid the regular annual dividend on the preferred and common stock. Net...
Sunland Company had 204000 shares of common stock, 21000 shares of convertible preferred stock, and $592000...
Sunland Company had 204000 shares of common stock, 21000 shares of convertible preferred stock, and $592000 of 11% convertible bonds outstanding during 2021. The preferred stock is convertible into 40400 shares of common stock. During 2021, Sunland paid dividends of $0.54 per share on the common stock and $1.80 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2021 was $357000 and the income tax rate was 25%....
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 180,000 shares of convertible preferred stock. The preferred shares are convertible into 360,000 shares of common stock. During the year Ahnberg paid $108,000 cash dividends on the preferred stock. Net income was $1,060,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)...
Sheridan Company had 206000 shares of common stock, 20000 shares of convertible preferred stock, and $598000...
Sheridan Company had 206000 shares of common stock, 20000 shares of convertible preferred stock, and $598000 of 12% convertible bonds outstanding during 2021. The preferred stock is convertible into 39000 shares of common stock. During 2021, Sheridan paid dividends of $0.56 per share on the common stock and $1.80 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2021 was $366000 and the income tax rate was 25%....
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 320,000 shares of convertible preferred stock. The preferred shares are convertible into 640,000 shares of common stock. During the year Ahnberg paid $192,000 cash dividends on the preferred stock. Net income was $2,362,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)
At January 1, 2021, Canaday Corporation had outstanding the following securities: 670 million common shares 20...
At January 1, 2021, Canaday Corporation had outstanding the following securities: 670 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $2,000 million face amount, convertible into 80 million common shares The following additional information is available: On September 1, 2021, Canaday sold 78 million additional shares of common stock. Incentive stock options to purchase 50 million shares of common stock after July 1, 2020, at $10 per share, were outstanding at the beginning and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT