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Morgarella [4.7K]
2 years ago
9

Getaway Travel Company reported net income for 2021 in the amount of $50,000. During 2021, Getaway declared and paid $2,000 in c

ash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share? (Round final answers to 2 decimal places.
Business
1 answer:
Ad libitum [116K]2 years ago
7 0

Answer:

$0.53 per share

Explanation:

The computation of basic earnings per share is shown below:-

Basic earnings per share = (Net income - Preferred dividend) ÷ (Outstanding common stock)

= ($50,000 - $2,000) ÷ (40,000 × 2) + ($10,000 × 6 ÷ 12 × 2)

= $48,000 ÷ (80,0000 + $10,000)

= $48,000 ÷ $90,000

= $0.53 per share

Therefore for computing the basic earnings per share we simply applied the above formula.

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While running a program, Sasha enters a negative number when a positive value was expected. Which type of error is likely to occ
Eddi Din [679]

Answer:

I believe it's Logic

Explanation:

8 0
1 year ago
Read 2 more answers
On January 1, 2020, Cougar Sales, Inc. issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and
PSYCHO15rus [73]

Answer:

$700

Explanation:

If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.

Discount = Face value - Issuance price = $15,000 - $14,700 = $300

Bond's Life = 6 years

Amortization of discount = $300 / 6 = $50 annually = $25 semiannually

Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually

Interest Expense Includes both the coupon payment and discount amortization for the period.

Interest Expense = $675 + $25 = $700

4 0
1 year ago
A registered investment company whose share price fluctuates independently of its net asset value is most likely
bazaltina [42]

Answer:

Closed-End Fund

Explanation:

Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.

5 0
2 years ago
Teton, Inc., reported a net gain of $41,400 on its foreign assets due to the weakening of the U.S. dollar in 2017. In the same y
sammy [17]

Answer:

Option D is correct one.

$ 154,200 increase to accumulated other comprehensive income

Explanation:

Foreign currency gain = $41,400

Un-realised gain on its trading securities= $112,800

Increase in Accumulated other comprehensive income= $ 154,200

6 0
1 year ago
The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The followi
Strike441 [17]

Answer:

$25,400

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

The movement in the retained earnings balance may be expressed as

Opening balance + net income - cash dividend paid = closing retained earnings balance

Cash dividend declared - Cash dividend paid =  Cash dividend payable

$49,000 - Cash dividend paid = $23,600

Cash dividend paid = $49,000 - $23,600

= $25,400

7 0
1 year ago
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