Question

# On March 1, 2019, Baltimore Corporation had 95,000 shares of common stock outstanding with a par...

On March 1, 2019, Baltimore Corporation had 95,000 shares of common stock outstanding with a par value of \$5 per share. On March 1, Baltimore Corporation authorized a 15% stock dividend when the market value was \$10 per share. Use this information to calculate the amount either (debited) or credited to retained earnings. Enter as a negative number if retained earnings is debited and a positive number if retained earnings is credited.

2) The Common Stock account for Baltimore Corporation on January 1, 2018 was \$62,500. On July 1, 2018 Baltimore issued an additional 7,500 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 \$129,000.  Use this information to determine for December 31, 2018 the amount of Earnings per Share (rounded to the nearest cent).

#### Homework Answers

Answer #1

Question 1:

Amount of Stock dividend = 95000*5 = 475000*15% = \$ 71,250

This amount is to be debited to retained earnings account.

Retained earnings debit by \$ -(71250)

Stock dividend will be declared on the par value of the shares but not on market value

Question 2:

EPS = Net income attributable to shareholders/weighted average no. of shares

Net income attributable to shareholders = \$ 129000

Weighted average no. of common shares:

8500 shares[(62500-20000)/5] outstanding from beginning = 8500 shares

7500 shares outstanding for 6 months = 7500*6/12 = 3750 shares

Total weighted avg. no of shares = 12250 shares

EPS = 129000/12250 = \$ 10.53

Know the answer?
Your Answer:

#### Post as a guest

Your Name:

What's your source?

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Not the answer you're looking for?
Ask your own homework help question
ADVERTISEMENT
##### Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

ADVERTISEMENT
##### Active Questions
• This structure is numerous in leaf cells and is the site of photosynthesis A. Vacuole B....
asked 11 minutes ago
• 1. For Drug X, Cmax occurs at 4 hours post-dose, but maximum response does not occur...
asked 23 minutes ago
• Newly formed S&J Iron Corporation has 191,000 shares of \$3 par common stock authorized. On March...
asked 26 minutes ago
• You purchased a Treasury bond futures contract at a price of 92 percent of the face...
asked 26 minutes ago
• Select the correct definition of a sampling distribution of a sample proportion. a. a probability distribution...
asked 29 minutes ago
• the main difference between rhizome and a stolon is a)stolons may produce adventitious roots,while rhizomes cannot...
asked 41 minutes ago
• 1   Define by T:P2-P2 is given by T(p(x))=p(x)-p'(x) a. Prove that T is a linear transformation....
asked 42 minutes ago
• Only eukaryotic cells have A. DNA B. Menbrane-bound organelles C. Ribosomes D. Cytoplasm
asked 44 minutes ago
• 7. MRS and utility maximization Rina lives in Dallas and loves to eat desserts. She spends...
asked 44 minutes ago
• Heart Construction is analyzing its capital expenditure proposals for equipment in the coming year. The capital...
asked 45 minutes ago
• A newsgroup is interested in constructing a 90% confidence interval for the proportion of all Americans...
asked 45 minutes ago
• Twelve different video games showing alcohol use were observed. The duration times of alcohol use were​...
asked 57 minutes ago