Answer:
The correct answer is $1.2 per share.
Explanation:
According to the scenario, the computation of the given data are as follows:
Interest expense of Bonds = $20,000 × 4% = $800
Now, Interest expense of Bond, After tax = $800 × ( 1 - 50%) = $800 × 0.50
= $400
So, we can calculate the diluted earning by using following formula:
Diluted Earning = (Net income + Interest expense after tax) ÷ Total outstanding shares outstanding
Where, Total outstanding shares = 1,000 shares + 1,000 shares = 2,000 shares
By putting the value, we get
Diluted earning = ($2000 + $400 ) ÷ 2,000
= $1.2 per share
Answer:
d. Statements a and c are correct
Explanation:
The primary market is the market where for the first time the new securities such as shares, stocks, bonds, etc. are being sold to the general public or we can refer initial public offer. The initial public offer is an example of the primary market
On the other side, the secondary market is that market where the shares are bought or sold through the investors after the sale to the public at large.
Answer:
d. credit to Salaries Payable for $8,600
Explanation:
<em>The journal entry would be as follows.</em>
Magnum Company
Payroll Journal
Particulars Debit Credit
Salaries $12,000 Debit
Federal Income taxes withheld 2,500 Credit
Social Security & Medicare taxes withheld 900 Credit
Salaries Payable $8,600 Credit
Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the Social Security & Medicare taxes $ 900.
Answer:
(a) Belief that a company will remain in operation for the foreseeable future.
Accounting assumption or principle: Going concern assumption
(b) Indicates that personal and business record-keeping should be separately maintained.
Accounting assumption or principle: Economic entity assumption
(c) Only those items that can be expressed in money are included in the accounting records.
Accounting assumption or principle: Monetary unit assumption
(d) Separates financial information into time periods for reporting purposes.
Accounting assumption or principle: Periodicity assumption
(e) Measurement basis used when a reliable estimate of fair value is not available.
Accounting assumption or principle: Historical cost principle
(f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.
Accounting assumption or principle: Full disclosure principle
