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unit 2 accounting




Question;On;January 1, 2012, Chang Corp. had 480,000 shares of common stock;outstanding. During 2012, it had the following transactions that affected;the Common Stock account.;February 1;Issued 132,000 shares;March 1;Issued a 20% stock dividend;May 1;Acquired 113,000 shares of treasury stock;June 1;Issued a 3-for-1 stock split;October 1;Reissued 60,600 shares of treasury stock;(a);Determine;the weighted-average number of shares outstanding as of December 31;2012.;The weighted-average number of shares outstanding;On January 1, 2012, Bailey Industries had stock;outstanding as follows.;6% Cumulative preferred stock, $111 par value;issued and outstanding 12,000 shares;$1,332,000;Common stock, $11 par value, issued and;outstanding 267,600 shares;2,943,600;To acquire the net assets of three smaller;companies, Bailey authorized the issuance of an;additional 242,400 common shares. The acquisitions took place as;shown below.;Date of Acquisition;Shares Issued;Company A April 1, 2012;94,800;Company B July 1, 2012;115,200;Company C October 1, 2012;32,400;On May 14, 2012, Bailey realized a;$126,000 (before taxes) insurance gain on the expropriation of investments;originally purchased in 2000.;On December 31, 2012, Bailey recorded net income;of $304,800 before tax and exclusive of the gain.;Assuming a 41% tax rate, compute the;earnings per share data that should appear on the financial statements of;Bailey Industries as of December 31, 2012. Assume that the expropriation is;extraordinary.(Round;answer to 2 decimal places, e.g. $2.55.);Bailey Industries;Income Statement;For the year ended December 31, 2012;$;$;Amy Dyken, controller at Fitzgerald;Pharmaceutical Industries, a public company, is currently preparing the;calculation for basic and diluted earnings per share and the related disclosure;for Fitzgerald?s financial statements. Below is selected financial information;for the fiscal year ended June 30, 2012.;FITZGERALD PHARMACEUTICAL;INDUSTRIES;SELECTED BALANCE SHEET;INFORMATION;JUNE 30, 2012;Long-term debt;Notes payable, 10%;$1,162,000;8% convertible bonds payable;5,114,000;10% bonds payable;6,095,000;Total long-term debt;$12,371,000;Shareholders? equity;Preferred stock, 5% cumulative;$56 par value;105,300 shares authorized, 26,325 shares;issued and outstanding;$1,474,200;Common stock, $1 par, 10,066,000 shares;authorized;1,006,600 shares issued and outstanding;1,006,600;Additional paid-in capital;4,017,400;Retained earnings;6,016,900;Total shareholders? equity;$12,515,100;The following transactions have also occurred at;Fitzgerald.;1.;Options were granted on July 1, 2011, to;purchase 209,200 shares at $15 per share. Although no options;were exercised during fiscal year 2012, the average price per common share;during fiscal year 2012 was $20 per share.;2.;Each bond was issued at face value. The 8% convertible;bonds will convert into common stock at 56 shares per;$1,000 bond. The bonds are exercisable after 5 years and were issued in;fiscal year 2011.;3.;The preferred stock was issued in 2011.;4.;There are no preferred dividends in arrears, however, preferred;dividends were not declared in fiscal year 2012.;5.;The 1,006,600 shares of common stock were outstanding;for the entire 2012 fiscal year.;6.;Net income for fiscal year 2012 was $1,505,000, and the average;income tax rate is 45%.;For the fiscal year ended June 30, 2012;calculate the following for Fitzgerald Pharmaceutical Industries.(Round the answers to 2 decimal places, e.g. $2.45.)(a)Basic earnings per share.;Basic earnings per share;$;(b) Diluted;earnings per share.;Diluted earnings per share;$


Paper#38596 | Written in 18-Jul-2015

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