Acc124Exam1Spring2005SOLN

Acc124Exam1Spring2005SOLN - NAME_ EXAM #1 Spring 2005 Exam...

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NAME_________________________ EXAM #1 Spring 2005 Exam Content and Point Allocation Question Type Point Value Multiple Choice (on PageOut) 25 Problem 1 – Stockholders’ Equity 20 Problem 2 – Earnings Per Share 20 Problem 3 – Dilutive Securities 19 Problem 4 – Shareholders’ Equity Transactions 16 TOTAL 100 GOOD LUCK! EXAM #1/ Spring 2005/ Page 1
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NAME_________________________ PROBLEMS 1 & 2: Shareholders’ Equity ( 20 points) and Earnings Per Share (20 points) Forte Piano, controller at Instrumental Industries, a public company, is currently preparing the calculation for basic and diluted earning per share and the related disclosure for Instrumental’s external financial statements. Below is selected financial information for the fiscal year ended June 30, 2005. Instrumental Industries Selected Statement of Financial Position Information June 30, 2005 Long-term Debt 7% bonds payable $5,000,000,000 8% convertible debentures 2,000,000,000 Total long-term debt $7,000,000,000 Shareholders’ Equity Preferred stock, 6% cumulative, nonconvertible, $__ par value, 100,000,000 shares authorized, 20,000,000 shares issued and outstanding $1,000,000,000 Common stock, $1 par, 1,000,000,000 shares authorized, 690,000,000 shares issued and 600,000,000 shares outstanding 690,000,000 Additional paid-in capital 3,785,000,000 Retained earnings 6,042,800,000 Treasury stock ($974,700,000) Total shareholders’ equity $10,543,100,000 The following transactions also occurred at Instrumental: 26812. Options were granted in 2003 to purchase 60,000,000 shares of common stock at $12 per share. No options were exercised during 2005. The average price per common share during fiscal year 2005 was $18 per share. 26813.
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This homework help was uploaded on 04/10/2008 for the course ACT 123 taught by Professor Venuti during the Fall '07 term at Hofstra University.

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Acc124Exam1Spring2005SOLN - NAME_ EXAM #1 Spring 2005 Exam...

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