Lars Inc. issued 100 shares of common stock ($5 par) and 250 shares of preferred stock ($100 par) for a lump sum of $50,000. The fair value of the common stock is $100 per share, and the fair value of the preferred stock is $105 per share. The journal entry to record the transaction includes the following:

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On June 30, 2021, when Ansley Co.’s stock was selling at $65 per share, its Shareholders’ Equity accounts were as follows:Common Stock at Par ($50 par, 60,000 shares issued)$3,000,000Additional Paid-in Capital – Common Stock$600,000Retained Earnings$4,200,000After distributing a 100% stock dividend, what should the balance for the Common Stock at Par account be?

Part B. What is Los Pollos Hermanos’ basic earnings per share (EPS) for 2021?

Chaney Corp had 1,500,000 shares of $1 par common stock outstanding for the year. The company reported a net income of $1,000,000. Additionally, the company had 300,000 employee stock options outstanding throughout the year. Each stock option entitles the holder to acquire one share of the company’s common stock for $20. The average market price of the company’s common shares was $150. What is the denominator used in calculating diluted earnings per share for Chaney Corp in that year?

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On January 1, 2020, Maple Corp. issued 1,000 8%, 10-year convertible bonds. Each bond has a face value of $1,000 and is convertible into two shares of common stock, each with a par value of $1. Assume the bonds were sold at 97, and the stock’s fair value is $3. What amount should Maple Corp. credit to Paid-in Capital—Common Stock when issuing these convertible bonds?

What method is utilized in the diluted earnings per share (EPS) calculation for convertible preferred stock?

Bonus Question #1: Mandatorily redeemable preferred shares are classified on the balance sheet as:

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