Chapter 14 in-class exercises

Chapter 14 in-class exercises - CHAPTER 14 LONG TERM...

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CHAPTER 14 LONG TERM LIABILITIES: BONDS AND NOTES EXERCISES Ex. 14–1 Miller Co. a. Earnings before bond interest and income tax. .......... $ 3,000,000 Bond interest. .................................................................. 1,000,000 Balance. ............................................................................ $ 2,000,000 Income tax. ....................................................................... 800,000 Net income. ...................................................................... $ 1,200,000 Dividends on preferred stock. ....................................... 1,000,000 Earnings available for common stock. ......................... $ 200,000 Earnings per share on common stock. ........................ $ 0.50 b. Earnings before bond interest and income tax. .......... $ 4,000,000 Bond interest. .................................................................. 1,000,000 Balance. ............................................................................ $ 3,000,000 Income tax. ....................................................................... 1,200,000 Net income. ...................................................................... $ 1,800,000 Dividends on preferred stock. ....................................... 1,000,000 Earnings available for common stock. ......................... $ 800,000 Earnings per share on common stock. ........................ $ 2.00 c. Earnings before bond interest and income tax. .......... $ 5,000,000 Bond interest. .................................................................. 1,000,000 Balance. ............................................................................ $ 4,000,000 Income tax. ....................................................................... 1,600,000
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This note was uploaded on 11/25/2010 for the course BUSINESS bus 100 taught by Professor Jones during the Spring '10 term at Thomas Edison State.

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Chapter 14 in-class exercises - CHAPTER 14 LONG TERM...

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