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Salsk061 [2.6K]
3 years ago
11

Sheridan company had 303000 shares of common stock issued and outstanding at december 31, 2017. no common stock was issued durin

g 2018. on january 1, 2018, sheridan issued 195000 shares of nonconvertible preferred stock. during 2018, sheridan declared and paid $103000 cash dividends on the common stock and $84000 on the preferred stock. net income for the year ended december 31, 2018 was $611000. what should be sheridan's 2018 earnings per common share? (rounded to the nearest penny)
Business
1 answer:
Nutka1998 [239]3 years ago
8 0

EPS is Net Income attributed to shareholders divided by no. of shares outstanding. The dividend on preferred stock is subtracted from net income before calculating earnings per share (EPS). Following is the formula for Earnings per share

EPS = (Net Income – Preferred Dividend)/ No. of common stocks outstanding

= ($611,000 - $84,000)/ 303,000

= $1.74

Therefore, earnings per share would be $1.74.

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Lopez Corporation incurred the following costs while manufacturing its product.
grandymaker [24]

Answer:

$358,150

Explanation:

Cost of goods manufactured is calculated in a Schedule of Manufacturing Costs as follows :

Cost of goods manufactured = Beginning Work In Process + Total Manufacturing Costs - Ending Work In Process

where,

Total Manufacturing Costs :

Materials used in product              $124,260

Depreciation on plant                     $69,650

Property taxes on plant                   $21,750

Labor costs of assembly-line        $120,570

Factory supplies used                     $25,810

Total                                               $362,040

therefore,

Cost of goods manufactured = $13,700 +   $362,040 - $17,590 = $358,150

8 0
3 years ago
Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments
balu736 [363]

Answer:

a.

                                                                       Debit   Credit

December 31, 2017

Lease Equipment Under Capital Leases    $166,794  

                                                      Lease Liability    $166,794

December 31, 2017/January 1, 2018

Lease Liability                                        $40,000  

                                                         Cash             $40,000

b.                                           Debit               Credit

December 31, 2018

Depreciation Expense  $23,828  

          Accumulated Depreciation      $23,828

December 31, 2018/January 1, 2019

Interest Expense           $12,679  

Lease Liability          $27,321  

                           Cash                     $40,000

c.                                             Debit     Credit

December 31, 2019

Depreciation Expense        $23,828  

  Accumulated Depreciation  $23,828

December 31, 2019/January 1, 2020

Interest Expense                    $9,947  

Lease Liability                 $30,053  

                Cash                         $40,000

d. Balance Sheet

December 31,2019

Property Plant and Equipment                             Current Liabilities  

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656  

                                                        $119,138                Long Term  

                                                                                      Lease Liability $36,362

Explanation:

a. The journal entries, that should be recorded on January 1, and December 31, 2017, by Steel would be as follows:

                                                                       Debit   Credit

December 31, 2017

Lease Equipment Under Capital Leases    $166,794  

                                                      Lease Liability    $166,794

December 31, 2017/January 1, 2018

Lease Liability                                        $40,000  

                                                         Cash             $40,000

Lease Equipment Under Capital Leases=(40,000*PVIFA(10%,Years = 40,000*4.16986))= $166,794  

b. The journal entries, that should be recorded on January 1 and December 31, 2018, by Steel would be as follows:

                                          Debit               Credit

December 31, 2018

Depreciation Expense  $23,828  

          Accumulated Depreciation      $23,828

December 31, 2018/January 1, 2019

Interest Expense           $12,679  

Lease Liability          $27,321  

                           Cash                     $40,000

Depreciation Expense= (166,794/7)=$23,828

Interest Expense [(166,794 - 40,000)*10%]=$12,679  

Lease Liability=(40,000 - 12,679)=$27,321

c. The journal entries, that should be recorded on January 1, and December 31, 2019, by Steel would be as follows:

                                            Debit     Credit

December 31, 2019

Depreciation Expense        $23,828  

  Accumulated Depreciation  $23,828

December 31, 2019/January 1, 2020

Interest Expense                    $9,947  

Lease Liability                 $30,053  

                Cash                         $40,000

d. The amounts that would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement would be as follows:

Balance Sheet

December 31,2019

Property Plant and Equipment                             Current Liabilities  

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656  

                                                        $119,138                Long Term  

                                                                                      Lease Liability $36,362

8 0
3 years ago
Which one of the following parties can sell shares of ABC stock in the primary market? A. ABC company B. Any corporation, other
Alexxandr [17]

Answer:

The correct answer is letter "A": ABC company.

Explanation:

Corporations and governments finance their activities by issuing stock or bonds which are <em>purchased by the public directly from the issuing corporation or government entity</em>. This is considered the primary market, which provides investors their first chance to purchase new security.

3 0
3 years ago
Question 1 of 20
qaws [65]

Answer:

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Explanation:

3 0
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