FINANCIAL ACCOUNTING II

The LOL Company had the following items in its complex capital structure

on December $31,2023$:

Preferred stock, $$8$ par value, $$1$ dividend, $10,000$ shares issued and

outstanding.

Common stock, $$5$ stated value, $40,000$ shares issued on July $1,$

On December $31,2023,$ the market value per share of the

common stock was $$12.$

Additional paid$-$in capital, $$40,000.$

Retained earnings, $$317,000.$

Treasury stock, common $($bought back in $2022$ at cost of $$7$ per

share$),$ $$56,000.$

Net income for $2023,$$$138,000.$

Stock options outstanding since January $2,2023,$ representing

$14,000$ potential common shares.

When the options are available to be exercised in $2026,$ the exercise price

will be $$9$ per share. The cash that would hypothetically be collected at the

potential exercise of the options would permit LOL to acquire $6,000$ shares

of treasury stock.

What earnings per share would The LOL Company report for $2023?$

$*$MAKE THE ANSWERS LOOK LIKE THE EXAMPLE BELOW$*$

Ex$.$as of and for the year ended December $31,2023,$ JEM, Inc. had the

following items in its capital structure:

Net income for $2023-$ $$132,000.$

Common stock $-$ $$7$ stated value; $$9$ market value; $20,000$ shares

issued on January $2,2020.$

Common stock warrants outstanding $-$ issued on October $1,2023$;

convertible in $5$ years into $2052$ common shares.

Preferred stock $-4\%$; $$10$ par value; $$16$ market value; $36,000$

shares issued on August $1,2021$; $6,000$ shares of treasury stock

acquired on February $28,2022$; convertible into $5,887$ shares of

common stock.

Given the data provided above, prepare a schedule to support the

reporting of earnings per share for the year ended December $31,2023.$

$1(2052)=>s13$

JEM, Inc.

Computation of Earnings Per Share $($EPS$)$

For the Year Ended Pecember $31,2023$

Netincome for the year

Preferred stock dividend for theyear

$36,000$

$-6,000$

$30,000$

$(4\%)$

$=>12,0$

STAPAES

Earrings available to the common shareholders

Divided by:

Weighted arerage common shares outstanding

Potential shares available from the

exercise of stack warrants year$)$

Potential shares arising row the

conversion of pres enred stock

Cnet of potential treasurfstoc.

acquired with cas received in oprersion

$$120000$$$132000$

Total shares octstanding

Earnings per share