Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in...

Question

Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:

	Dakota	Jersey
	Year 2	Year 1	Year 2	Year 1
Net income	$2,147	$3,765	$1,920	$3,212
Average number of common shares outstanding	594	599	334	363

a.Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.

	Year 2	Year 1
Dakota	$fill in the blank 1 per share	$fill in the blank 2 per share
Jersey	$fill in the blank 3 per share	$fill in the blank 4 per share

Retained Earnings Statement

Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:

Retained earnings, February 1, 20Y1	$491,900
Net income	73,800
Cash dividends declared	13,300
Stock dividends declared	25,100

Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2.

Sumter Pumps Corporation
Retained Earnings Statement
For the Year Ended January 31, 20Y2
Retained Earnings, February 1, 20Y1		$fill in the blank 2
Net Income	$fill in the blank 4
Dividends Declared	fill in the blank 6
Increase in Retained Earnings		fill in the blank 8
Retained Earnings, January 31, 20Y2		$fill in the blank 10

Stockholders' Equity Section of Balance Sheet

The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:

Common Stock, $15 par	$522,000
Paid-In Capital from Sale of Treasury Stock	21,400
Paid-In Capital in Excess of Par—Common Stock	13,920
Retained Earnings	819,000
Treasury Stock	10,830

Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 570 shares have been reacquired.

Goodale Properties Inc.
Stockholders' Equity
June 30, 20XX
Paid-In Capital:
Common Stock, $45 Par (80,000 Shares Authorized, 11,600 Shares Issued)	$fill in the blank 2
Excess over par	fill in the blank 4
Paid-in capital, common stock		$fill in the blank 6
From Sale of Treasury Stock		fill in the blank 8
Total Paid-In Capital		$fill in the blank 9
Retained Earnings		fill in the blank 11
Total		$fill in the blank 12
Treasury Stock (570 Shares at Cost)		fill in the blank 14
Total Stockholders' Equity			$fill in the blank 15

Treasury Stock Transactions

Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 14,600 shares of its common stock at $31 per share. On June 14, 9,200 of the reacquired shares were sold at $33 per share, and on November 23, 3,500 of the reacquired shares were sold at $33.

a.Journalize the transactions of January 31, June 14, and November 23. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 31	Treasury Stock	fill in the blank 300ecefb3f8a063_2
	Cash		fill in the blank 300ecefb3f8a063_4
June. 14	Cash	fill in the blank 300ecefb3f8a063_6	fill in the blank 300ecefb3f8a063_7
	Treasury Stock	fill in the blank 300ecefb3f8a063_9	fill in the blank 300ecefb3f8a063_10
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 300ecefb3f8a063_12	fill in the blank 300ecefb3f8a063_13
Nov. 23	Cash	fill in the blank 300ecefb3f8a063_15	fill in the blank 300ecefb3f8a063_16
	Treasury Stock	fill in the blank 300ecefb3f8a063_18	fill in the blank 300ecefb3f8a063_19
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 300ecefb3f8a063_21	fill in the blank 300ecefb3f8a063_22

Feedback

b.What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
$fill in the blank 734012ff804507c_1 Credit

c.What is the balance in Treasury Stock on December 31 of the current year?
$fill in the blank 734012ff804507c_3 Debit

Effect of Stock Split

Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 63,000 shares of common stock outstanding, declared a 3-for-1 stock split.

a.What will be the number of shares outstanding after the split?
fill in the blank 1 shares

b.If the common stock had a market price of $228 per share before the stock split, what would be an approximate market price per share after the split?
$fill in the blank 2 per share

Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment