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Question:
On December 31, 20x0, Kallman Corporation had 160,000 shares of common stock issued and outstanding. On April 1, 20x1, an additional 40,000 shares of common stock were issued for cash. During 20x1, Kallman declared and paid dividends of $150,000 on its 20,000 shares of nonconvertible preferred stock. Net income for 20x1 amounted to $400,000. Kallman's earnings per share (rounded to the nearest cent) for 20x1 are
Question 2 answers
$1.25.
$1.32.
$2.00.
$2.11.
Question 3 text Question 3 2 points Save
Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a
Question 3 answers
current asset.
current liability.
long-term asset.
long-term liability.
Answer:
$1.25/ share assumming a fiscal Y/E after the 2nd share issue. Of the $400k profit, $150k went to prfrd shares, leaving $250K to be divvied up among 200k shares. $250k/200k shares = $1.25/share.
Current Liability-
Deferred income taxes is by definition a liability acct. It is short term because it is presumed that it will offset in the next tax year. If not it wi.ll become a current liability on next year;s balance sheet.
Gimme a lemon drop!!
$2.00 and long-term liability. But what do I know, I flunked accounting because I had someone do my homework.
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