Intermediate Accounting Assignment | Buy Assignments Online
Weighted Average Shares
At the beginning of 2014, Hardin Company had 260,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:
| March | 1 | Issued 45,000 shares of stock at $21 per share. |
| June | 1 | Issued a 10% stock dividend. |
| July | 1 | Issued 9,000 shares of stock at $26 per share. |
| Aug. | 31 | Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. |
| Oct. | 31 | Reacquired 99,000 shares as treasury stock at a cost of $29 per share. |
| Nov. | 30 | Reissued 59,000 treasury shares at a price of $32 per share. |
Required:
- Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number.
shares2. Determine the number of common shares outstanding at December 31, 2014.
shares
Retained Earnings Statement
Rolt Company began 2016 with a $110000 balance in retained earnings. During the year, the following events occurred:
- The company earned net income of $89000.
- A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7840 after related income taxes of $3360.
- Cash dividends totaling $12500 and stock dividends totaling $19000 were declared.
- One thousand shares of callable preferred stock that originally had been issued at $120 per share were recalled and retired at the beginning of 2016 for the call price of $130 per share.
- Treasury stock (common) was acquired at a cost of $25000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.
Required:
- Prepare a statement of retained earnings for the year ended December 31, 2016.
| ROLT COMPANY | ||
| Statement of Retained Earnings | ||
| For Year Ended December 31, 2016 | ||
| Retained earnings, as previously reported, January 1, 2016 | $ | |
| Adjusted retained earnings, January 1, 2016 | $ | |
| $ | ||
| $ | ||
| Retained earnings, December 31, 2016 | $ | |
Edgefield Corporation has issued 10%, participating, cumulative preferred stock with a total par value of $22,000 and common stock with a total par value of $66,000. Therefore, the preferred stock par value is 1/4 and the common stock par value is 3/4 of the total par value. Edgefield intends to distribute cash dividends of $14,000, and there are no dividends in arrears. What is the dividend distribution to each class of stock if the preferred stock is fully participating?
| Preferred | Common | |
| Dividends to each class of stock | $ | $ |
On June 30, 2016, Gaston Corporation sold $890,000 of 9% face value bonds for $939,477.25. On December 31, 2016, Gaston sold $490,000 of this same bond issue for $465,748.35. The bonds were dated January 1, 2016, pay interest semiannually on each December 31 and June 30, and are due December 31, 2023.
Required:
Compute the effective yield rate on each issuance of Gaston’s 9% bonds. Click here to access the tables to use with this problem. Round your answer to the nearest percentage.
| June 30, 2016 issuance: | % |
| December 31, 2016 issuance: | % |
Madison Corporation is authorized to issue $550,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.
Required:
Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)
| 1. The bonds to yield 12% | $ |
| 2. The bonds to yield 10% | $ |
