User Account

All Pages

Determine the number of shares

Assignment Help Accounting Basics
Reference no: EM132616927

Question - On June 1, 2018, Gustav Corp. and Gabby Limited merged to form Sheridan Inc. A total of 880,000 shares were issued to complete the merger. The new corporation uses the calendar year as its fiscal year.

On April 1, 2020, the company issued an additional 440,000 shares for cash. All 1.32 million shares were outstanding on December 31, 2020. Sheridan Inc. also issued $660,000 of 20-year, 10% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 41 common shares at the annual interest date. None of the bonds have been converted to date. If the bonds had been issued without the conversion feature, the annual interest rate would have been 11%.

Sheridan Inc. is preparing its financial statements for the fiscal year ended December 31, 2020. The financial statements will show earnings per share figures based on a reported after-tax net income of $1,710,000. (The tax rate is 30%).

Required -

a. Determine for 2020 the number of shares to be used in calculating: 1. Basic earnings per share, 2. Diluted earnings per share.

b. Determine for 2020 the earnings figures to be used in calculating: 1. Basic earnings per share, 2. Diluted earnings per share. (Use a financial calculator or Excel functions in arriving at the calculations for the bonds.)

Reference no: EM132616927

Questions Cloud

Calculate the weighted average number of common shares : Calculate the weighted average number of common shares to use in calculating earnings per common share for 2019 on the 2019 comparative income statement
Crime analysis requires establishing value out of data : Crime analysis requires establishing value out of data. Officer Johnson gives you a cell phone that was in possession of a burglary suspect.
Calculate diluted earnings per share for the year ended : Assume the bonds were issued in 2019. Assume that 8 of the 52 bonds were converted on July 1, 2020. Calculate diluted earnings per share for the year ended
Communication strategies for working with population : Describe communication strategies for working with the population within this department, including considerations for culture and gender.
Determine the number of shares : Determine for 2020 the number of shares to be used in calculating: 1. Basic earnings per share, 2. Diluted earnings per share
Gang violence within community : Identify at least three specific attributes that lead to gang violence within community. discuss how these attributes might have impact on gangs of community.
Analyse internal and external business environment forces : Select and approach any business entity of your choice and critically identify and analyse with examples both internal and external business environment forces
Compute the current break-even point in units : Required - Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used
Race-Ethnicity in Courts-Correctional System presentation : Race and Ethnicity in the Courts and Correctional System presentation. Describe the person's racial and ethnic background.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain known three risk attitudes a decision maker takes

Describe the process a manager must go about when choosing which of three kinds of breads to produce

  Prepare a corrected retained earnings statement

Prepare a corrected retained earnings statement. Concord Corp. normally sells investments of the type mentioned above

  Lew jewelry co uses gold in the manufacture of its products

lew jewelry co. uses gold in the manufacture of its products. lew anticipates that it will need to purchase 500 ounces

  What is the correct adjusted ending cash balance

Annapolis Company's bank statement indicated an ending cash balance of $9,640. What is the correct adjusted ending cash balance

  Discuss total production cost and total quality cost

Expand the company's quality cost report by showing the costs in both years as percentages of both total production cost and total quality cost

  What was the amount of deposits in transit

Assuming that there were no deposits in transit at the beginning of January, what was the amount of deposits in transit at the end of January

  Compute the journal entry to record the dividend on april

Jewel Company received the dividend on April 15. The journal entry to record the dividend on April 15 is

  Evaluate the depreciation expense

A machine cost $500,000 on April 1, 2010. Its estimated salvage value is $50,000 and its expected life is eight years. Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.

  Compute cost of goods manufactured

Lopez Corporation incurred the following costs while manufacturing its product. Compute cost of goods manufactured

  Explain the difference between treatment of prepaid income

Explain the difference between the treatment of prepaid income under the tax law and under financial accounting

  Compute the machines internal rate of return

The machine is expected to save $2,500 per year in cash operating costs and to have a 10-year life. Compute the machine's internal rate of return

  Calculating tax liability-marginal rate

Williams Inc reports total net income of $130,000 during 2012. This includes $10,000 of income from 5.5% Orange County municipal bonds. Thus the Corporation's taxable income is equal to $120,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd