Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Year 2022 2023 2024 Numerator + Denominator = = LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) = = Preferred Stock, Common Stock, $1 Additional Paid-in $10 par par $40 9 9 Earnings per share 9 $9 8 48 (4) 22.0 66.0 6.60 3 $ 75.60 Capital $ 550 520 85 1,155 (40) (22.0) 1,093.0 90 31 $ 1,214.0 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55). Retained Earnings $ 1,900 (4) (13) 350 2,233 (25) (4) (17) 450 2,637 (96.60) (33) 434 $ 2,937.40 Total Shareholders' Equity $ 2,490 529 93 (4) (13) 350 3,445 (69) (4) (17) 450 3,805 34 (33) 434 $ 4,236
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Balance at January 1, 2022 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2022 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2023 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2024 Year 2022 2023 2024 Numerator + Denominator = = LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December 31, 2022, 2023, and 2024 ($ in millions) = = Preferred Stock, Common Stock, $1 Additional Paid-in $10 par par $40 9 9 Earnings per share 9 $9 8 48 (4) 22.0 66.0 6.60 3 $ 75.60 Capital $ 550 520 85 1,155 (40) (22.0) 1,093.0 90 31 $ 1,214.0 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2022, 2023, and 2024. No potential common shares were outstanding during any of the periods shown. Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55). Retained Earnings $ 1,900 (4) (13) 350 2,233 (25) (4) (17) 450 2,637 (96.60) (33) 434 $ 2,937.40 Total Shareholders' Equity $ 2,490 529 93 (4) (13) 350 3,445 (69) (4) (17) 450 3,805 34 (33) 434 $ 4,236
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...
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Transcribed Image Text:Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years
ending December 31, 2022, 2023, and 2024.
Balance at January 1, 2022
Sale of preferred shares
Sale of common shares, 7/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2022
Retirement of common shares, 4/1
Cash dividend, preferred
Cash dividend, common
3-for-2 split effected in the form of a common
stock dividend, 8/12
Net income
Balance at December 31, 2023
10% common stock dividend, 5/1
Sale of common shares, 9/1
Cash dividend, preferred
Cash dividend, common
Net income
Balance at December 31, 2024
Year
2022
2023
2024
Numerator
+
Denominator =
=
LOCKE INTERTECHNOLOGY CORPORATION
Statements of Shareholders' Equity
For the Years Ended December 31, 2022, 2023, and 2024
($ in millions)
=
=
Preferred Stock, Common Stock, $1 Additional Paid-in
$10 par
par
$40
9
9
Earnings per share
9
$9
8
48
(4)
22.0
66.0
6.60
3
$ 75.60
Capital
$ 550
520
85
1,155
(40)
(22.0)
1,093.0
90
31
$ 1,214.0
Required:
Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and
compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2022, 2023, and
2024. No potential common shares were outstanding during any of the periods shown.
Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should
be entered as 5.55).
Retained Earnings
$ 1,900
(4)
(13)
350
2,233
(25)
(4)
(17)
450
2,637
(96.60)
(33)
434
$ 2,937.40
Total
Shareholders'
Equity
$ 2,490
529
93
(4)
(13)
350
3,445
(69)
(4)
(17)
450
3,805
34
(33)
434
$ 4,236
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