Details of this Paper

Paul Company had 100,000 shares of common stock ou...

Description

Solution


Question

Paul Company had 100,000 shares of common stock outstanding on January 1, 2009. On September 30, 2009, Paul sold 48,000 shares of common stock for cash. Paul also had 10,000 shares of convertible preferred stock outstanding throughout 2009. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 500, 8%, convertible bonds outstanding throughout 2009. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at par. Reported net income for 2009 was $300,000 with a 40% tax rate. The regular common and preferred dividends were paid in 2009. Compute basic earnings per share for 2009.,Paul Company had 100,000 shares of common stock outstanding on January 1, 2009. On September 30, 2009, Paul sold 48,000 shares of common stock for cash. Paul also had 10,000 shares of convertible preferred stock outstanding throughout 2009. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 500, 8%, convertible bonds outstanding throughout 2009. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at par. Reported net income for 2009 was $300,000 with a 40% tax rate. The regular common and preferred dividends were paid in 2009. Compute basic earnings per share for 2009.,artial balance sheets for ABC Company and additional information are provided below. ABC Company, Partial Balance Sheets, As of December 31 2009 2008 Equipment $100,000 $75,000 Accumulated depreciation (25,000) (20,000) Common stock, $5 par 180,000 100,000 Paid in capital 20,000 Retained earnings 40,000 30,000 Additional information for 2009: July 1: Issued 8,000 shares of common stock for cash. July 1: Purchased new equipment for cash. December 31: Paid cash dividends of $20,000. Prepare the financing activities section of the statement of cash flows for 2009.

 

Paper#1919 | Written in 18-Jul-2015

Price : $25
SiteLock