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PLEASE HELP! Will Rate immediately (Please be 1000% sure its correct answer): Information related to Parts 3 and 4 Part 3 (24 points) Steve Harrington
PLEASE HELP! Will Rate immediately (Please be 1000% sure its correct answer):
Information related to Parts 3 and 4 Part 3 (24 points) Steve Harrington of the controller's Mee of Scoops Ahoy, Inc. was given the assignment of recording several transactions and determining basic and diluted eamings per share values for the year ended December 31, 2021. Harrington was given the following information 1. Scoops Ahoy, Ine. is authorized to issue 3,000,000 shares of SID par value common stock. On December 31, 2020, 2,000,000 shares were issued and were outstanding. Indicate the dollar effect and its direction that each of the transactions occurring in 2021 listed ahove has on the financial statement categories listed in the table provided in the answer sheet. For example, if assets and liabilities both increase by $100, type +$100 in the answer sheet. If there is a decrease of $100, type either -$100 or ($100). Assume Scoops Ahoy uses the cost method to account for treasury stock. 2 Problem 4 (20 points) The per share market prices of the common stock on selected dates are as follows: January 1, 2021 $ 21.00 April 1, 2021 $ 25.00 July 1, 2021 $ 11,00 August 1, 2021 S 10.50 November 1, 2021 $9.00 2021 aver market price $ 16.00 Using the information related to Scoops Ahoy, Ine, provided above, provide answers to the following questions: a. (7 points) Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2021. 3. A total of 700,000 shares of an authorid 1.200.000 har of convertible procured stock were issued on July 1, 2020. The stock was issued at its par value of $25 and it has a cumulative Annual dividend of S3 pursbure. The stock is convertible to common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion does not change in the event of stock dividends or lock splits Dividends are paid quarterly on March 31, June 30, September 30, and December 31. b. (5 points) Compute basie emings per share for the year ended December 31, 2021 4. Thompson corporation is subject to a 20% income tax rate. The after tax net income for the year ended December 31, 2021 was $11,550,000, e. (8 points) Compute diluted earnings per share for the year ended December 31, 2021. S. As of December 31, 2021, Scoops has common stock options granted in a prior year) to purchase 150,000 shares of common stock at SB per share. The following transactions took place during 2021: January 1-A 5% QUILO stock divideod was declared and issued April 1-A total of 400,000 shares of tbe S) Convertible preferred stock was converted into common stock. This was the only conversion of the preferred stock during 2021. April 15 - A cash dividend of S0.30 per share was declared and paid. July 1-A2-for-I split of the common stock became effective on this date. August 1 - A total of 300,000 shares of common stock were issued to acquire a factory building. October 15 - A cash dividend of $0.20 per share was declared and paid. November 1- A total of 24,000 shares of common stock were purchased on the open market at $9 per share. These shares were to be held as treasury sock and were still in treasures of December 31, 2021. Preferred dividends were declared and paid as scheduled. Information related to Parts 3 and 4 Part 3 (24 points) Steve Harrington of the controller's Mee of Scoops Ahoy, Inc. was given the assignment of recording several transactions and determining basic and diluted eamings per share values for the year ended December 31, 2021. Harrington was given the following information 1. Scoops Ahoy, Ine. is authorized to issue 3,000,000 shares of SID par value common stock. On December 31, 2020, 2,000,000 shares were issued and were outstanding. Indicate the dollar effect and its direction that each of the transactions occurring in 2021 listed ahove has on the financial statement categories listed in the table provided in the answer sheet. For example, if assets and liabilities both increase by $100, type +$100 in the answer sheet. If there is a decrease of $100, type either -$100 or ($100). Assume Scoops Ahoy uses the cost method to account for treasury stock. 2 Problem 4 (20 points) The per share market prices of the common stock on selected dates are as follows: January 1, 2021 $ 21.00 April 1, 2021 $ 25.00 July 1, 2021 $ 11,00 August 1, 2021 S 10.50 November 1, 2021 $9.00 2021 aver market price $ 16.00 Using the information related to Scoops Ahoy, Ine, provided above, provide answers to the following questions: a. (7 points) Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2021. 3. A total of 700,000 shares of an authorid 1.200.000 har of convertible procured stock were issued on July 1, 2020. The stock was issued at its par value of $25 and it has a cumulative Annual dividend of S3 pursbure. The stock is convertible to common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion does not change in the event of stock dividends or lock splits Dividends are paid quarterly on March 31, June 30, September 30, and December 31. b. (5 points) Compute basie emings per share for the year ended December 31, 2021 4. Thompson corporation is subject to a 20% income tax rate. The after tax net income for the year ended December 31, 2021 was $11,550,000, e. (8 points) Compute diluted earnings per share for the year ended December 31, 2021. S. As of December 31, 2021, Scoops has common stock options granted in a prior year) to purchase 150,000 shares of common stock at SB per share. The following transactions took place during 2021: January 1-A 5% QUILO stock divideod was declared and issued April 1-A total of 400,000 shares of tbe S) Convertible preferred stock was converted into common stock. This was the only conversion of the preferred stock during 2021. April 15 - A cash dividend of S0.30 per share was declared and paid. July 1-A2-for-I split of the common stock became effective on this date. August 1 - A total of 300,000 shares of common stock were issued to acquire a factory building. October 15 - A cash dividend of $0.20 per share was declared and paid. November 1- A total of 24,000 shares of common stock were purchased on the open market at $9 per share. These shares were to be held as treasury sock and were still in treasures of December 31, 2021. Preferred dividends were declared and paid as scheduledStep by Step Solution
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