Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show in excel formula and ansee all parts 1 Smith Co. is considering the following alternative plans for financing the company: Plan 1 Issue

please show in excel formula and ansee all parts image text in transcribed
1 Smith Co. is considering the following alternative plans for financing the company: Plan 1 Issue 10% Bonds (at face) Issue S10 Common Stock Income tax is estimated at 25% of income. Plan 11 $1,000,000 $2,000,000 $3,000,000 Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000 Plan 1 Plan II Income Before Taxes Income Tax Expense Net Income Number of Shares Earnings Per share 2 The following accounts and their balances appear in the ledger on December 31 of the current year: Common Stock, $20 par Paid-In Capital in Excess of Par Retained Earnings Treasury Stock $400,000 44,000 265,000 20,000 Complete the Stockholders' Equity section of the balance sheet as of December 31. Twenty five thousand shares of common stock are authorized, and 1,000 shares have been reacquired. Stockholders' Equity Paid In Capital: Common Stock, $20 par (25,000 shares authorized shares issued) Add: Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Paid In Capital and Retained Earnings Treasury Stock (1.000 shares at cost) Total Stockholders' Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing ISO Management System

Authors: Dr. RAMESH R LAKHE, Dr. RAKESH L. SHRIVASTAVA, M M NAVEED, KRANTI P DHARKAR, Dr. C M SEDANI

1st Edition

1702203913, 978-1702203913

More Books

Students also viewed these Accounting questions