Question

1) The following information pertains to J Company's outstanding stock for 2021: Common stock, $1 par...

1) The following information pertains to J Company's outstanding stock for 2021:

Common stock, $1 par
Shares outstanding, 1/1/2021 19,500
2 for 1 stock split, 4/1/2021 19,500
Shares issued, 7/1/2021 6,900
Preferred stock, $100 par, 6% cumulative
Shares outstanding, 1/1/2021 5,900


What is the number of shares J should use to calculate 2021 basic earnings per share?

Multiple Choice

  • 39,000.

  • 42,450.

  • 45,900.

  • 48,850.

2)On December 31, 2020, Beta Company had 250,000 shares of common stock issued and outstanding. Beta issued a 6% stock dividend on June 30, 2021. On September 30, 2021, 31,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2021?

Multiple Choice

  • 272,750.

  • 265,000.

  • 257,250.

  • 297,860.

Dublin Inc. had the following common stock record during the current calendar year:
   

Outstanding, beginning of year 2,600,000
Additional shares issued 6/30 160,000
Additional shares issued 9/30 160,000


A 10% stock dividend was paid on December 1. What is the number of shares to be used in computing basic EPS?

Multiple Choice

  • 2,720,000.

  • 2,992,000.

  • 2,948,000.

  • 3,036,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation:

Number of Shares outstanding as on 1st April = 19,500

Due to Stock Split the number of shares outstanding as on date of stock split should be changed to give impact of Stock Split.

Hence in our case 2 shares for 1 held is issued hence revised opening shares would be 39,000 (19,500*2)

Hence 39,000 is outstanding for the entire year.

Again on 1st July additional 6,900 shares are issued and this shares remain outstanding for a period of 6 months i.e. from July to December

Hence Weighted Average Number of Shares Outstanding = ((39,000*12)+(6,900*6))/12 = 42,450 Shares.

Therefore, option B is correct

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
The following information pertains to J Company's outstanding stock for 2018: Common stock, $1 par Shares...
The following information pertains to J Company's outstanding stock for 2018: Common stock, $1 par Shares outstanding, 1/1/2018 10,000 2 for 1 stock split, 4/1/2018 10,000 Shares issued, 7/1/2018 5,000 Preferred stock, $100 par, 7% cumulative Shares outstanding, 1/1/2018 4,000 What is the number of shares J should use to calculate 2018 basic earnings per share? a. 20,000. b. 22,500. c. 25,000 . d. 27,000.
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1,...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 55,000 shares for cash. On January 1, 2021, XYZ issued 25,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2021, XYZ paid the regular annual dividend on the preferred and common stock. Net...
The information below pertains to Tamarisk Company for 2021. Net income for the year $1,140,000 6%...
The information below pertains to Tamarisk Company for 2021. Net income for the year $1,140,000 6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into     30 shares of common stock 1,990,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible      into 3 shares of common stock 4,110,000 Common stock, $10 par value 6,020,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during...
Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 150,000 shares outstanding) $...
Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 150,000 shares outstanding) $ 150,000 Additional paid-in capital 100,000 Retained earnings 275,000 The board of directors has declared a 15 percent stock dividend on January 1 and a $0.20 cash dividend on March 1. What changes occur in the capital accounts after each transaction if the price of the stock is $5? Round the number of shares outstanding to the nearest whole number and the other answers to...
On January 1, 2021, Grouper Corp. had 472,000 shares of common stock outstanding. During 2021, it...
On January 1, 2021, Grouper Corp. had 472,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 125,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 100,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 63,000 shares of treasury stock (a) Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding
The following information pertains to JAE Corp. at January 1, Year 1: Common stock, $10 par,...
The following information pertains to JAE Corp. at January 1, Year 1: Common stock, $10 par, 13,000 shares authorized, 2,600 shares issued and outstanding $ 26,000 Paid-in capital in excess of par, common stock 17,100 Retained earnings 52,100 J AE Corp. completed the following transactions during Year 1: Issued 950 shares of $10 par common stock for $29 per share. Repurchased 150 shares of its own common stock for $26 per share. Resold 50 shares of treasury stock for $27...
On January 1, Guillen Corporation had 94,500 shares of no-par common stock issued and outstanding. The...
On January 1, Guillen Corporation had 94,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $3 per share to stockholders of record on June 30. July 10 Paid the $3 cash dividend. Dec. 1 Issued 3,000 additional shares of common stock for $19 per...
On January 1, Pharoah Corporation had 97,500 shares of no-par common stock issued and outstanding. The...
On January 1, Pharoah Corporation had 97,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,500 additional shares of common stock for $19 per...
On January 1, 2021, Ivanhoe Corporation had 1,000,000 shares of common stock outstanding. On March 1,...
On January 1, 2021, Ivanhoe Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 120,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 500,000 of its own outstanding shares and retired them. Compute the weighted average number of shares to be used in computing earnings per share for 2021. Weighted average number of shares   
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30,...
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 58,000 shares of common stock for cash. Paul also had 15,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 7%, and is convertible into 3 shares of common for each share of preferred. Paul also had 600, 9%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT