Explore BrainMass
Share

Earnings available for common stockholders

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

At the end 2005, the Long Life Light Bulb Company announced had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating expenses and $125,000 interest expenses. The company is subject to a 30 percent tax rate and has declared $57,000 total preferred stock dividends.

a)How much is the earnings available for common stockholders?

© BrainMass Inc. brainmass.com October 25, 2018, 1:44 am ad1c9bdddf
https://brainmass.com/business/business-math/earnings-available-for-common-stockholders-273429

Solution Preview

Please see the attached file
At the end 2005, the Long Life Light Bulb Company announced had produced a gross profit of $1 million.  The company has also established that over the course of this year it has incurred $345,000 in operating expenses and ...

Solution Summary

Calculates the earnings available for common stockholders.

$2.19
See Also This Related BrainMass Solution

Stockholders equity : explained

See attachment need to verify my work, submit your work for comparison.

QS-13-2
Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500 shares of $4 par value common stock for $255,000 cash. (b) On April 1, GT Co. issues no-par value common stock for $50,000 cash. (c) On April 6, MTV issues 2,000 shares of $20 par value common stock for $35,000 of inventory, $135,000 of machinery, and acceptance of a $84,000 note payable.

QS- 13-4
Prepare journal entries to record the following transactions for Skylar Corporation:
May 15 Declared a $48,000 cash dividend payable to common stockholders.
July 31 Paid the dividend declared on May 15.

QS 13-5
The stockholders' equity section of Catalina Company's balance sheet as of April 1 follows. On April 2, Catalina declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $25. Prepare the stockholders' equity section immediately after the stock dividend.
Common stock?$5 par value, 375,000 shares
authorized, 150,000 shares issued and outstanding . . . . . . . . . . . $ 750,000
Contributed capital in excess of par value, common stock . . . . . . . 352,500
Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,102,500
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,735,500

View Full Posting Details