Calculate basic EPS, and explain the EPS effect of convertible preferred Thrifty Co. reported net income of $790,800 for its fiscal year ended January 31, 2014. At the beginning of that fiscal year, 100,000 shares of common stock were outstanding. On October 31, 2013, an additional 30,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 40,000 shares of 6%, $50 par value preferred stock that were outstanding the entire year. Required:
a. Calculate basic earnings per share of common stock for the year ended January 31, 2014.
b. If Thrifty Co.’s preferred stock were convertible into common stock, what additional calculation would be required?

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)