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NikAS [45]
3 years ago
7

aspela Corp. had the same capital structure in year 7 and year 8, consisting of the following: Preferred stock, $12 par, 5% cumu

lative, 20,000 shares issued and outstanding $ 240,000 Common stock, $6 par, 250,000 shares issued and outstanding 1,500,000 Caspela reported net income of $600,000 for year 8. No preferred dividends were paid during year 7, but Caspela paid $20,000 in preferred dividends in year 8. In its year 8 income statement what amount should Caspela report as basic earnings per share
Business
1 answer:
Shtirlitz [24]3 years ago
8 0

Answer:

$2.35 per share

Explanation:

 The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Number of shares outstanding)

= ($600,000 - $12,000) ÷ (250,000 shares)

= $588,000 ÷ 250,000 shares

= $2.35 per share

The preference dividend is

= $240,000 × 5%

= $12,000

We simply applied the above formula

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Rubin Enterprises had the following sales-related transactions on a recent day:
spayn [35]

Answer:

Transaction a

Debit  : Account Receivable $27,500

Credit : Sales Revenue $27,500

Transaction b

Debit  : Cash $5,875

Credit : Deferred Revenue $5,875

Transaction c

Debit  : Sales Revenue $1,500

Credit : Account Receivable $1,500

Transaction d

Debit  : Deferred Revenue $5,875

Credit : Sales Revenue $5,525

Credit : Discount received $350

Explanation:

The journals have been prepared above.

8 0
3 years ago
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Usimov [2.4K]
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8 0
2 years ago
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J. S. Bach's organ chorale prelude "Jesu, Joy of Man's Desiring" is an example of ______ texture.
drek231 [11]
The answer is "polyphonic" 

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3 0
2 years ago
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Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio
Sophie [7]

Answer:

A. Differential Analysis dated March 16

                                    Reject            Accept

Sales revenue per unit  $0              $7.20

Variable production cost 0                5.00

Additional export tariff     0                 1.08

Total variable costs          0             $6.08

Net income                    $0                $1.12

B. The special order should be accepted.

2) Product B:

Revenue of $39,500

Variable cost of goods sold of $25,500

Variable selling expenses of $16,500

Fixed costs of $15,000

Operational loss $17,500

Differential Analysis of May 9

                                    Reject            Accept

Sales revenue             $0                $39,500

Variable costs:

Product                        $0                 25,500

Selling                          $0                  16,500

Fixed costs                  $15,000         15,000

Total costs                   $15,000      $57,000

Net loss                       $15,000       $17,500

B) Product B should be discontinued.

Explanation:

a) Data and Calculations:

Normal selling price per unit of Product A = $9.60

Special order price for the export market = $7.20

Variable production cost = $5.00 per unit

Additional export tariff = $1.08 ($7.20 * 15%)

Total variable production and export costs = $6.08

7 0
2 years ago
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
Masteriza [31]

Answer:

a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.

  • Company B notes $82,300
  • Company C bonds $603,800
  • Company X bonds $120,000
  • Company Z notes $276,000

b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.

  • Dr Company B notes 4,800
  •     Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)

  • Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140)
  •    Cr Company C bonds 38,340

  • Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100)
  •    Cr Company X bonds 2,100

  • Dr Company Z notes 8,100
  •     Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)

Explanation:

beginning of the year                cost                  fair value

Company A bonds                $534,100             $492,000

Company B notes                  $159,140              $155,000

Company C bonds               $662,400              $642,140

since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):

Jan. 29 Sold one-half of the Company B notes for $78,820.

Dr Cash 78,820

    Cr Company B notes 77,500

    Cr Gain on sale of Company B notes 1,320

July 6 Purchased bonds of Company X for $122,100.

Dr Company X bonds AFS 122,100

    Cr Cash 122,100

Nov. 13 Purchased notes of Company Z for $267,300.

Dr Company Z bonds AFS 267,300

    Cr Cash 267,300

Dec. 9 Sold all of the bonds of Company A for $524,800.

Dr Cash 524,800

    Cr Company A notes 492,000

    Cr Gain on sale of Company B notes 32,800

3 0
2 years ago
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