This paper circulates around the core theme of ACCOUNTING 101-O. Company had net income of $3,000,000 in 2016, together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
O. Company had net income of $3,000,000 in 2016, which included a net loss from an extraordinary event of $300,000 (net of $100,000 tax)The activity for O. common shares during 2016 included the following:Jan. 1 there were 1,000,000 shares outstandingApr. 1 issued 20,000 sharesSept. 1, purchased 70,000 treasury sharesDec. 1, declared a 100% stock dividend on common sharesRound weighted average number of shares to the nearest whole share if neededAdditional InformationConvertible preferred stock: During the year there were 10,000 shares of cummulative convertible preferred stock paying a 3% dividend, each share with a par value ofconvertible into four shares of common stock. No preferred dividends were declared or paid during the yearConvertible bonds: One thousand 6% convertible bonds were issued for the first time on July 1, 2015 at a price of 100. Each bond has a $1,000 face value and is convertiNone were actually converted during the year. The income tax rate is 35%Stock options (Group A):During the year 70,000 options existed for key executives to buy common stock at an exercise price of $50. the average stock price was $70 durduring the year.Stock Options (Group B): On July 1, 2015, 10,000 options were granted to all employees who had worked for the company for more than 10 years to buy common stockUsing the table Below, show how earnings per share should appear on the Face of O’s 2016 income statementBasicDilutedIncome from con. Operations before extraordinary itemsExtraordinary loss (net 100,000 tax)Net Incomeof $100 andertible into 50 shares of common stock.during the year. No options were actually exercisedock at an exercidr price of $80. The average stock price was $70 during the year. No options were actually exercised during the year
