January 1 , 2005 , Poe issued 200,000 shares of nonconvertible preferred stock . During 2005 , Poe declared and paid $ 75,000 cash dividends on the common stock and $ 60,000 on the preferred stock . Net income for the year ended December 31 , 2005 was $ 330,000 . What should be Poe ' s 2005 earnings per common share ?
Question 17
On December 1 , 2005 , Clay Co . declared and issued a 6 % stock dividend on its 100,000 shares of outstanding common stock . There was no other common stock activity during 2005 . What number of shares should Clay use in determining earnings per share for 2005 ?
Question 18
Wyatt Co . has a probable loss that can only be reasonably estimated within a range of outcomes . No single amount within the range is a better estimate than any other amount . The loss accrual should be
Question 19
On September 1 , 2005 , Cano & Co ., a U . S . corporation , sold merchandise to a foreign firm for 250,000 francs . Terms of the sale require payment in francs on February 1 , 2006 . On September 1 , 2005 , the spot exchange rate was $. 20 per franc . At December 31 , 2005 , Cano ' s year end , the spot rate was $. 19 , but the rate increased to $. 22 by February 1 , 2006 , when payment was received . How much should Cano report as a foreign exchange gain or loss in its 2006 income statement ?
Question 20
During 2005 , Rex Co . introduced a new product carrying a two-year warranty against defects . The estimated warranty costs related to dollar sales are 2 % within 12 months following sale and 4 % in the second 12 months following sale . Sales and actual warranty expenditures for the years ended December 31 , 2005 and 2006 are as