Question

One company had 40,000 common shares outstanding for all of 2020. Additionally, the company had 20,000...

One company had 40,000 common shares outstanding for all of 2020. Additionally, the company had 20,000 convertible preferred shares outstanding, issued in 2019. Each preferred share is convertible into two common shares. On August 1, 2020, 18,000 preferred shares were converted to common shares. Also, the company issued 30,000 options on July 1, 2020. The options allow you to buy 30,000 common shares at $ 25 per share. The average market price for the second half of 2020 was $ 30 per share. On October 1, 2020, 12,000 options were exercised.

1. Calculate the weighted average number of common shares outstanding for the purpose of 2020 basic earnings per share.
 
2. Calculate the weighted average number of common shares outstanding for 2020 diluted earnings per share.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been presneetd in the supporting sheet.

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
One company had 40,000 common shares outstanding for all of 2020. Additionally, the company had 20,000...
One company had 40,000 common shares outstanding for all of 2020. Additionally, the company had 20,000 convertible preferred shares outstanding, issued in 2019. Each preferred share is convertible into two common shares. On August 1, 2020, 18,000 preferred shares were converted to common shares. Also, the company issued 30,000 options on July 1, 2020. The options allow you to buy 30,000 common shares at $ 25 per share. The average market price for the second half of 2020 was $...
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May...
1. Windsor Corporation had 318,000 shares of common stock outstanding on January 1, 2017. On May 1, Windsor issued 31,500 shares. (a) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued for cash. Weighted-average number of shares outstanding $ (b) Compute the weighted-average number of shares outstanding if the 31,500 shares were issued in a stock dividend. Weighted-average number of shares outstanding $ 2. Sarasota Corporation reported net income of $230,000 in 2017 and had 47,700...
PART 1 Bonita Corporation had 116,400 shares of stock outstanding on January 1, 2020. On May...
PART 1 Bonita Corporation had 116,400 shares of stock outstanding on January 1, 2020. On May 1, 2020, Bonita issued 68,400 shares. On July 1, Bonita purchased 9,240 treasury shares, which were reissued on October 1. Compute Bonita’s weighted-average number of shares outstanding for 2020. Weighted-average number of shares outstanding    PART 2 Larkspur Corporation reported net income of $181,440 in 2020 and had 45,900 shares of common stock outstanding throughout the year. Also outstanding all year were 5,400 shares...
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...
Sunland Company, has 4220000 shares of common stock outstanding on December 31, 2020. An additional 798000...
Sunland Company, has 4220000 shares of common stock outstanding on December 31, 2020. An additional 798000 shares of common stock were issued on April 1, 2021, and 397000 more on July 1, 2021. On October 1, 2021, Sunland issued 19400, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2021. What is the number of shares to be used in computing basic earnings per share...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock outstanding on January 1, 2019. The tax rate is 20% and the common stock sold at an average market price of $24 per share during the period. The company had the following transactions affecting common shares outstanding during the year: • Issued 50,000 shares of common stock on March 1, 2019 • Repurchased 5,000 shares of common stock on June 1, 2019 • Had...
Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the...
Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the company issued 50,000 additional shares for $50.00 each. On April 30, the company repurchased 5,000 treasury shares. On June 1, the company made a 4-for-3 bonus issue. On August 1, the company issued 1,000 new shares of common stock for $45.00 each. On September 30th, the company issued a 15% stock dividend. Harris Pilton has 2,000 shares of 5%, $10 par, noncumulative, nonconvertible preferred...
Swifty Corporation had 1,000,000 shares of common stock issued and outstanding at December 31, 2020. On...
Swifty Corporation had 1,000,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1,000,000 shares were issued for cash. Swifty also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 291000 shares of common stock at $28 per share. The average market price of Swifty’s common stock was $35 during 2021. The number of shares to be used in computing diluted earnings per share...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 36,000 shares...
On December 31, 2020, Jackson Company had 100,000 shares of common stock outstanding and 36,000 shares of 5%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Jackson purchased 30,000 shares of common stock on the open market as treasury stock for $41 per share. Jackson sold 6,600 treasury shares on September 30, 2021, for $43 per share. Net income for 2021 was $186,905. Also outstanding during the year were fully vested incentive stock options giving key executives the...
On January 1, 2017, Carla Vista Ltd. had 510,000 common shares outstanding. During 2017, it had...
On January 1, 2017, Carla Vista Ltd. had 510,000 common shares outstanding. During 2017, it had the following transactions that affected the common share account: Feb. 1 Issued 183,000 shares. Mar. 1 Issued a 12% stock dividend. May 1 Acquired 210,000 common shares and retired them. June 1 Issued a 3-for-1 stock split. Oct. 1 Issued 51,000 shares. The company’s year end is December 31. Determine the weighted average number of shares outstanding as at December 31, 2017. Assume that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT