Ch.14 - CHAPTER 14 LONG TERM LIABILITIES: BONDS AND NOTES...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 14 LONG TERM LIABILITIES: BONDS AND NOTES EXERCISES Ex. 141 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 Net income..................................................................... $ 2,400,000 Dividends on preferred stock....................................... 1,000,000 Earnings available for common stock.......................... $ 1,400,000 Earnings per share on common stock......................... $ 3.50 Ex. 142 Factors other than earnings per share that should be considered in evaluating fin-...
View Full Document

This note was uploaded on 03/26/2012 for the course ACCOUNTING 1A,1B,1C taught by Professor Spinozzi during the Summer '10 term at DeAnza College.

Page1 / 6

Ch.14 - CHAPTER 14 LONG TERM LIABILITIES: BONDS AND NOTES...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online