Student Name:
Class:
2$
Debit Credit
Tax expense
Paid-in capital – stock options
Deferred tax asset
Common stock (40 million shares at $1 par per share)
Paid-in capital – excess of par
Income taxes payable
Deferred tax asset
Paid-in capital – tax effect of stock options
Deferred tax asset
Tax expense
Cash
Paid-in capital – stock options
Requirement 4:
Paid-in capital – stock options
Common stock (40 million shares at $1 par per share)
Paid-in capital – excess of par
Cash
Paid-in capital -stock options
Requirement 6:
40
40
40
40 «- Correct!
Requirement 5:
Compensation expense
Paid-in capital – stock options
Compensation expense
Requirement 3:
($ in millions, except “per option” amounts)
Total Compensation Cost
Compensation expense
WALTERS AUDIO VISUAL, INC.
At January 1, 2016, the estimated value of the award is:
Estimated fair value per option
Account
Requirement 2:
($ in millions)
General Journal
WALTERS AUDIO VISUAL, INC.
Problem 19-05
McGraw-Hill/Irwin
Instructor
Requirement 1:
Options granted
Given Data P19-05:
WALTERS AUDIO VISUAL, INC.
Income tax rate
Fair value
Exercise price
$1 par common share options granted
Student Name:
Class:
(160,500)$
Problem 19-09
McGraw-Hill/Irwin
2014
Net Loss
Instructor
Earnings (Net Loss) per Share
RENN-DEVER CORPORATION
Net Income
Shares at Jan. 1
Stock Dividend Adjustment
2016
Retired Shares
2015
Net Income
Shares at Jan. 1
2016 2015 2014
6,794,292$ 5,464,052$ 5,624,552$
212,660
889,950 698,000 –
Common stock, 1,855,000 shares at $1 par
Paid-in capital – excess of par
At December 31, 2013, paid-in capital consisted of the following:
For the Years ended December 31,
Common shares retired, 9/30, (110,000 shares)
Common stock dividends
Given Data P19-09:
Statements of Retained Earnings
RENN-DEVER CORPORATION
Balance at beginning of year
Stock dividend (34,900) shares
Net income (loss)
4.86$
Preferred Dividends
Shares at Jan. 1
New Shares
Earnings Per Share
2015
Net Income
Net Income
Preferred Dividends
Shares at Jan. 1
Student Name:
3.00
1.50
4.14$
4.10$
Stock Dividend Adjustment
New Shares
Earnings Per Share
Net Income
Preferred Dividends
Shares at Jan. 1
Correct!
2016
Retired Shares
Stock Split Adjustment
Earnings Per Share
2014
Problem 19-10
($ in millions, except per share amounts)
Earning Per Share
LOCK INTERTECHNOLOGY CORPORATION
Total
Preferred Common Additional Share-
Stock, $10 Stock, $1 Paid-in Retained holders’
par par Capital Earnings Equity
55 495 1,878 2,428
10 470 480
Cash dividend, common
Net income
3-for-2 split, 8/15
Net income
10% common stock dividend, 5/1
Sale of common shares, 9/1
Balance at Dec. 31, 2016
Balance at Dec. 31, 2015
Cash dividend, preferred
(4) (36) (20) (60)
(1) (1)
(20) (20)
Cash dividend, common
Cash dividend, preferred
Retirement of common shares, 4/1
Given Data P19-10:
($ in millions)
For the Years Ended December 31, 2014, 2015, and 2016
Statements of Shareholders’ Equity
LOCK INTERTECHNOLOGY CORPORATION
Balance at Jan. 1, 2014
Sale of preferred shares
Cash dividend, preferred
Cash dividend, common
Net income
Balance at Dec. 31, 2014
Sale of common shares, 7/1
Earnings Per Share
Shares at Jan. 1
New Shares
Shares Retired
Stock Dividend Adjustment
Exercise of Options
Student Name:
Class:
2,100$
2,100$
75$
Diluted EPS
Net Income
Preferred Dividends
Basic EPS
Net Income
Problem 19-12
(amounts in thousands, except per share amount)
Earnings Per Share
DOW STEEL CORPORATION
New Shares
Shares Retired
Stock Dividend Adjustment
Earnings Per Share
Preferred Dividends
Shares at Jan. 1
DOW STEEL CORPORATION
600,000 shares
300,000 shares
Options
granted Share price
Average common stock market price, 2016
December 31, 2014
December 31, 2016
Options granted and common share prices:
Date granted
Given Data P19-12:
Common stock, 12/31/15
Preferred stock, 12/31/15
Preferred stock cash dividends paid, 12/15/16
Common shares sold, 2/28/16
Shares retired, 7/1/16
Net income, 12/31/16
Income tax rate
Common stock cash dividends paid, 12/15/16