7) X-on Ltd. Began 2001 with the following balances in its shareholders' equity accounts Common shares,...

 

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7) X-on Ltd. Began 2001 with the following balances in its shareholders' equity accounts Common shares, 800,000 shares authorized Issued and outstanding Retained Earnings Total shareholders' equity The following share-related transactions occurred during the year: Date Transaction March 1 May 1 Sept 1 Nov 30 Issued at $20 per share 1000,000 $2.50 cumulative preferred shares with an unauthorized limit Issued 50,000 common shares at $15 per share Repurchased 1500,000 common shares at $16 per share Declared and distributed a 3:1 share split on the common shares $3,000,000 2,500,000 $5,500,000 a) Calculate the weighted average number of shares outstanding using the information above. b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) Expenses (related to continuing operations) Extraordinary gain on expropriated land (net of $71,000 tax expense) Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) Gain on sale of investment in shares Loss from operating discontinued operations (net of $40,000 tax expense) Income taxes on income from continuing operations Sales Loss from the sale of plant assets * *The assets were items of equipment replaced with new technology. $ (136,500) (2,072,500, 275,500 37,500 400,00 (182,500) (660,00) 5,375,000 (650,000) 7) X-on Ltd. Began 2001 with the following balances in its shareholders' equity accounts Common shares, 800,000 shares authorized Issued and outstanding Retained Earnings Total shareholders' equity The following share-related transactions occurred during the year: Date Transaction March 1 May 1 Sept 1 Nov 30 Issued at $20 per share 1000,000 $2.50 cumulative preferred shares with an unauthorized limit Issued 50,000 common shares at $15 per share Repurchased 1500,000 common shares at $16 per share Declared and distributed a 3:1 share split on the common shares $3,000,000 2,500,000 $5,500,000 a) Calculate the weighted average number of shares outstanding using the information above. b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) Expenses (related to continuing operations) Extraordinary gain on expropriated land (net of $71,000 tax expense) Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) Gain on sale of investment in shares Loss from operating discontinued operations (net of $40,000 tax expense) Income taxes on income from continuing operations Sales Loss from the sale of plant assets * *The assets were items of equipment replaced with new technology. $ (136,500) (2,072,500, 275,500 37,500 400,00 (182,500) (660,00) 5,375,000 (650,000)

Answer rating: 100% (QA)

a Calculate the weighted average number of shares outstanding Beginning Balance Jan 1 800000 common shares March 1 Issued 1000000 preferred shares May ... View the full answer