Rockland Corporation earned net income of $300,000 in 2014 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds, which are convertible into 16,000 shares of common. Rockland's tax rate is 40 percent.
Compute Rockland's 2014 diluted earnings per share. (Round answer to 2 decimal places, e.g. $3.55.)
| Diluted earnings per share |
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$
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| Ferraro's compensation expense 2014 |
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$
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| Ferraro's compensation expense for 2015 |
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$
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No.
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Account Titles and Explanation
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Debit
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Credit
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(a)
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(b)
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| 1. |
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On January 15, purchased 10,000 shares of Sanchez Company's common stock at $33.50 per share plus commission $1,980. |
| 2. |
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On April 1, purchased 5,000 shares of Vicario Co.'s common stock at $52 per share plus commission $3,370. |
| 3. |
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On September 10, purchased 7,000 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $4,910. |
On May 20, 2014, Arantxa sold 4,000 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3,850. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Arantxa told you that Arantxa Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices.
(a) Prepare the journal entries to record the above three security purchases. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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No.
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Date
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Account Titles and Explanation
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Debit
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Credit
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(1)
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Jan. 15, 2014 |
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(2)
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Apr. 1, 2014 |
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(3)
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Sep. 10, 2014 |
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(b) Prepare the journal entry for the security sale on May 20. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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| May 20, 2014 |
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(c) Compute the unrealized gains or losses. (Round answer to 0 decimal places, e.g. 2,500.)
| Unrealized LossesGains |
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$ |
Prepare the adjusting entries for Arantxa on December 31, 2014. (Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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| Dec. 31, 2014 |
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