Exam 12: Income and Changes in Retained Earnings

On January 1,2018,Edward Corporation had 10,000 shares of $6 par value common stock and 10,000 shares of 8%,$100 par value convertible preferred stock outstanding.The preferred shares carried a 3-for-1 conversion privilege.On October 1,2018,all of the preferred shares were converted to common.What number of shares must Edward use in computing basic earnings per share at December 31,2018?

A prior period adjustment appears in:

A small stock dividend is recorded at:

Of the items listed,which would appear closest to the bottom of the income statement?

Colfax Corporation's financial statements for the current year include the following: On the basis of this information,net income for the current year is:

How many shares of common stock are outstanding?

The purpose of developing the subtotal "Income from Continuing Operations" in an income statement is to:

Execucomp Corporation's financial statements in the current year show a loss from discontinued operations,a prior period adjustment,and an unusual and infrequent gain.If Execucomp's income statement is prepared according to generally accepted accounting principles (as illustrated in your text),which of the following four items would appear second in sequence in the income statement?

A company had 125,000 shares of common stock outstanding on January 1 and then sold 35,000 additional shares on March 30.Net income for the year was $594,750.What are earnings per share?

Which of the following has no effect on the computation of earnings per share for the current period?

The FASB has not compiled a comprehensive list of what is considered to be unusual and/or infrequent items;thus the determination is a matter of judgment.

A stock dividend provides a stockholder with more shares of stock,but his or her percentage of ownership in the company is no larger than before.

A statement of stockholders' equity discloses each of the following except: