Friar Inc. had a net income for 20X5 of $1,870,000. It had 600,000 shares of common stock outstanding on 1/1/X5 and repurchased 150,000 of those shares on 8/31/X5. It has no preferred stock. On 12/31/X5, Friar’s stock was selling for $26 per share. Which of the following is Friar’s price- earnings ratio on 12/31/X5?
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Cutlass Corporation is authorized to issue 40,000 shares of $1 par value common stock. On March 15, it issues 1,000 shares for $6 per share. Record this transaction for Cutlass.
McNair Corporation is authorized to issue 105,000 shares of 5 percent, $200 par value preferred stock. On May 22, McNair issues 32,000 shares for $325 per share. McNair declares the preferred dividend on September 1 and pays it on October 1.
a. Record the issuance of the preferred stock.
b. Record the declaration of the dividend on September 1.
c. Record the payment of the preferred dividend on October 1.