Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 9 In 2019, Zinnia Inc. issued 10,000, convertible preferred shares for $103 each. One preferred shares can be converted into three common shares. In
Question 9 In 2019, Zinnia Inc. issued 10,000, convertible preferred shares for $103 each. One preferred shares can be converted into three common shares. In August, 2020, all of the preferred shares were converted into common shares. The market value of the common shares at the time of conversion was $30 per share. What amount should be credited to Common Shares as a result of the conversion? $900,000 $300,000 $1,030,000 $500,000 Question 8 On December 31, 2020, Cadiz Inc. had the following share capital outstanding: 2,000, $6 cumulative preferred shares 30,000 no-par value common shares Dividends in arrears on the preferred shares was $6,000. Cash dividends were declared on December 31, 2020, totaling $30,000. The amount paid to the common shareholders is: $6,000 $12,000 $24,000 $18,000 Question 7 On January 1, 2020, Hammer Corp. had 200,000 common shares outstanding (no preferred shares issued). On July 1, 2020, the company issued 225,000. On December 31, 2020, the company reported $315,000 in net income. Basic earnings per share in 2020 is: $1.01 $2.80 $0.74 $1.40
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started