Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at december 31,2016, falcon ltd. had the following

At December 31,2016, Falcon Ltd. had the following items in shareholders' equity: Preferred shares, Class...

80.2K

Verified Solution

Question

Accounting

At December 31,2016, Falcon Ltd. had the following items in shareholders' equity: Preferred shares, Class A, nonvoting, cumulative, par $10, $2 dividend per share, 100,000 authorized, 50,000 issued.
Preferred shares, Class B, voting, cumulative, par $15,$3
$500,000 dividend per share, convertible at the rate of one preferred share to five common shares; 200,000 authorized, 80,000 issued
Common shares, voting; 1,000,000 authorized, 600,000 issued
Retained earnings (deficit).
[1,200,000],[5,357,000],[(2,394,000)],[4,663,000]
At December 31,2016 the following were disclosed in notes or other parts of the balance sheet:
There were two common share stock options outstanding:
$15 per share exercise price and 50,000 shares, currently exercisable
$17 per share exercise price and 120,000 shares, able to be exercised after January 1,2017
During 2017, the following occurred:
Net income was $1,100,000.
80,000 common shares were issued on March 1,2017 for $23 per share.
The tax rate was 40%
No dividends were declared or paid to any of the shareholders.
The average market price of Falcon's shares during 2017 was $20.
Required:
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

A physician with a practice is currently serving 280 patients. The physician would like to administer...

Calculus
1.2K views

8 Given f x y ex y Let P 4 2 u 1 4 a...

Algebra
1.2K views

Find the Taylor series about O for the following function f z sin Log 1...

Accounting
1.2K views

Based on this information, could you build the closing balance sheet of 2020? Remember to...

Accounting
1.2K views

[The following information applies to the questions displayed below.] The following...

Accounting
1.2K views

Indicate whether the statement is true or false, and justify your answer. The...

Accounting
1.2K views

T or F question. Explain why the answer is true or flase. Just answer it...

Accounting
1.2K views

Current Attempt in Progress These financial statement items are for Sunland Corporation at year end,...

Accounting
1.2K views

A system cannot be overcome or broken into if its internal controls are properly designed...

Accounting
1.2K views

Computing Issue Price for Zero Coupon Bonds Underwood Inc. issues $210,000 of zero coupon bonds...

Accounting
1.2K views

Use the simple interest formula to determine the missing value. p=$1525,r=?,t=2years,i=$67.10 r=% (Do not round...

Accounting
1.2K views

All of the following would be reported on the balance sheet as a current asset...