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intermediate accounting questions

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Question;1.);On January 1, 2012, Bailey;Industries had stock outstanding as follows. 6% Cumulative preferred stock;$119 par value, issued and outstanding 10,900 shares $1,297,100 Common stock;$11 par value, issued and outstanding 283,200 shares 3,115,200 To acquire the;net assets of three smaller companies, Bailey authorized the issuance of an;additional 270,000 common shares. The acquisitions took place as shown below.;Date of Acquisition Shares;Issued;Company A April 1, 2012 110,400;Company B July 1, 2012 130,800;Company C October 1, 2012 28,800;On May 14, 2012, Bailey realized a $150,000;(before taxes) insurance gain on the expropriation of investments originally;purchased in 2000.;On;December 31, 2012, Bailey recorded net income of $318,000 before tax and;exclusive of the gain. Assuming a 42% 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.)2. The per share market prices of the common;stock on selected dates were as follows.;Price per Share July 1, 2012 $20;January 1, 2013 21 April 1, 2013 25;July 1, 2013 11;August 1, 2013 10.5;November 1, 2013 9;December 31, 2013 10 3.;A total of 662,400 shares of an authorized;1,374,000 shares of convertible preferred stock had been issued on July 1;2012. The stock was issued at its par value of $25, and it has a cumulative;dividend of $3 per share. The stock is convertible into common stock at the;rate of one share of convertible preferred for one share of common.;The rate of conversion is to be;automatically adjusted for stock splits and stock dividends. Dividends are paid;quarterly on September 30, December 31, March 31, and June 30.;4. Thompson Corporation is subject to a 40%;income tax rate.;5. The after-tax net income for;the year ended December 31, 2013, was $11,800,000. The following specific;activities took place during 2013.;1. January 1?A 5% common stock dividend was;issued. The dividend had been declared on December 1, 2012, to all stockholders;of record on December 29, 2012.;2. April 1?A total of 458,400 shares of the $3;convertible preferred stock was converted into common stock. The company issued;new common stock and retired the preferred stock. This was the only conversion;of the preferred stock during 2013.;3. July 1?A 2-for-1 split of the;common stock became effective on this date. The board of directors had;authorized the split on June 1. 4. August 1?A total of 291,600;shares of common stock were issued to acquire a factory building.;5. November 1?A total of 29,400;shares of common stock were purchased on the open market at $9 per share. These;shares were to be held as treasury stock and were still in the treasury as of;December 31, 2013.;6. Common stock cash;dividends?Cash dividends to common stockholders were declared and paid as;follows. April 15?$0.30 per share October 15?$0.20 per share 7. Preferred stock;cash dividends?Cash dividends to preferred stockholders were declared and paid;as scheduled.;(a) Determine the number of;shares used to compute basic earnings per share for the year ended December 31;2013. (Round answer to 0 decimal places, e.g. 1,500.) Number of shares to;compute basic earnings per shareb) Determine the number of;shares used to compute diluted earnings per share for the year ended December;31, 2013. (Round answer to 0 decimal places, e.g. 1,500.) Number of shares to;compute diluted earnings per share(c) Compute the adjusted net income to be used;as the numerator in the basic earnings per share calculation for the year ended;December 31, 2013. Adjusted net income $10691200

 

Paper#50366 | Written in 18-Jul-2015

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