Question

Calculate earnings per share: a. Net income, $240,000 b. Preferred shares issued, 6,000 c. Average number...

Calculate earnings per share:

a. Net income, $240,000

b. Preferred shares issued, 6,000

c. Average number of common stock shares issued, 24,000

d. Cash dividends declared and paid on common stock, $30,000

e. Market price per share, $36

f. Average treasury shares of common stock, 4,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Net income = $240,000
Average number of common stock shares issued = 24,000
Average treasury shares of common stock = 4,000

Average number of common stock outstanding = Average number of common stock shares issued - Average treasury shares of common stock
Average number of common stock outstanding = 24,000 - 4,000
Average number of common stock outstanding = 20,000

Earnings per share = (Net income - Preferred stock dividend) / Average number of common stock outstanding
Earnings per share = ($240,000 - $0) / 20,000
Earnings per share = $240,000 / 20,000
Earnings per share = $12.00

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Refer to the following transactions. Sold 4,400 shares of $44 par value 7% preferred stock at...
Refer to the following transactions. Sold 4,400 shares of $44 par value 7% preferred stock at par. Declared the annual dividend on the preferred stock. Purchased 550 shares of preferred stock for the treasury at $53 per share. Issued 1,500 shares of $2 par value common stock in exchange for land valued at $116,000. Sold 262 shares of the treasury stock purchased in transaction c for $57 per share. Split the common stock 2-for-1. Transaction Cash Other Assets Liabilities Paid-in...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $150 par (50,000 shares authorized, 25,000 shares issued) $3,750,000 Paid-In Capital in Excess of Par—Preferred Stock 750,000 Common Stock, $15 par (700,000 shares authorized, 170,000 shares issued) 2,550,000 Paid-In Capital in Excess of Par—Common Stock 330,000 Retained Earnings 15,646,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:...
The stockholders' equity section of Case Corporation at December 31, 2022 included the following accounts: Preferred...
The stockholders' equity section of Case Corporation at December 31, 2022 included the following accounts: Preferred stock ............................ $240,000 Common stock ............................... $520,000 Paid-in capital – preferred stock .......... ? Paid-in capital – common stock ............. $584,000 Retained earnings .......................... $152,000 Treasury stock ............................. ? Paid-in capital – treasury stock ........... $ 18,000 Additional information appears below: 1. The preferred stock has a $40 par value and 6,000 shares are issued and outstanding. 2. The common stock has an $8...
Angie’s Antiques Inc. is authorized to issue 100,000 shares of $100 par value, 5% cumulative preferred...
Angie’s Antiques Inc. is authorized to issue 100,000 shares of $100 par value, 5% cumulative preferred stocked and 100,000 shares of $1 par value common stock. See the following transactions that occurred during the year:             Jan 18: Issued for cash 30,000 shares of common stock at $10 per share.             Feb 14: Issued 4,000 shares of preferred stock for $400,000.             Sept 20: Declared dividends on preferred stock of $5 per share.             Dec 18: Paid cash dividend declared...
Refer to the following transactions: 1. Issued 540 shares of $80 par value preferred stock at...
Refer to the following transactions: 1. Issued 540 shares of $80 par value preferred stock at par. 2. Issued 640 shares of $80 par value preferred stock in exchange for land that had an appraised value of $81,600. 3. Issued 19,000 shares of $4 par value common stock for $10 per share. 4. Purchased 4,750 shares of common stock for the treasury at $10 per share. 5. Sold 1,900 shares of the treasury stock purchased in transaction d for $12...
The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share $100 Dividend...
The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share $100 Dividend rate 8% Shares outstanding 10,000 Dividends in arrears none Common stock: Par value per share $10 Shares issued 115,000 Dividends paid per share $2.20 Market price per share $49 Additional paid-in capital $520,000 Unappropriated retained earnings (after closing) $250,000 Retained earnings appropriated for contingencies $280,000 Common treasury stock: Number of shares 10,000 Total cost $260,000 Net income
Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois....
Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $200 par (60,000 shares authorized, 30,000 shares issued) $6,000,000 Paid-In Capital in Excess of Par—Preferred Stock 720,000 Common Stock, $20 par (500,000 shares authorized, 210,000 shares issued) 4,200,000 Paid-In Capital in Excess of Par—Common Stock 550,000 Retained Earnings 24,316,000 During the...
The following information pertains to Parsons Co.:       Preferred stock, cumulative:             Par per share          &n
The following information pertains to Parsons Co.:       Preferred stock, cumulative:             Par per share                                                                                                      $100             Dividend rate                                                                                                         8%             Shares outstanding                                                                                          10,000             Dividends in arrears                                                                                            none       Common stock:             Par per share                                                                                                        $10             Shares issued                                                                                                120,000             Dividends paid per share                                                                                   $2.70             Market price per share                                                                                    $48.00       Additional paid-in capital                                                                                    $400,000       Unappropriated retained earnings (after closing)                                              $270,000       Retained earnings appropriated for contingencies                                            $300,000       Common treasury stock:             Number of shares                                                                                           ...
B&J Corporation was established in 2016. B&J has authorized 50,000 shares of common stock, par value...
B&J Corporation was established in 2016. B&J has authorized 50,000 shares of common stock, par value $2 per share, and 10,000 authorized shares of 6% preferred stock, par value $10 per share. Net Income for 2016 was $210,000. The following transactions took place during 2016: January 1 Issued 30,000 shares of common stock for cash at $20 per share. February 1 Issued 8,000 shares of preferred stock for cash of $50 per share. June 1 Repurchased 4,000 shares of L&D...
1) Dynatech Inc. reported a net income of $779,000 and a weighted average number of common...
1) Dynatech Inc. reported a net income of $779,000 and a weighted average number of common shares of 276,000 for the year. It also had 51,000 $2 preferred shares. a. Calculate basic earnings per share assuming the preferred shares are cumulative and the dividend was not paid b. Calculate basic earnings per share assuming the preferred shares are noncumulative and the dividend was paid c. Calculate basic earnings per share assuming the preferred shares are noncumulative and the dividend was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT