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The Common Stock account for Baltimore Corporation on January 1, 2018 was $62,500. On July 1,...

The Common Stock account for Baltimore Corporation on January 1, 2018 was $62,500. On July 1, 2018 Baltimore issued an additional 9,500 shares of common stock. The Common Stock is $5 par. There was neither Preferred Stock nor any Treasury Stock. Paid in Capital Excess to par Common Stock was $20,000 on January 1 and $40,000 on July 2 and net income was $129,500.  Use this information to determine for December 31, 2018 the amount of Earnings per Share (rounded to the nearest cent).

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Answer #1
Answer:
Calculate the amount of Earnings Per Share December 31,2018
EPS = Net Income /Weighted Average Number of Common Shares Outstanding
= 129500/17250
= 7.51
Net Income = 129500
Calculated Weighted Average Shares
Outstanding Entire Year = 62500/5 12500 No. of Shares
Add: Outstanding last 6 months = 9500 shares * 6/12 4750 No. of Shares
Weighted Average Common Shares = 17250
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