Question

General Corporation was organized on January 1 and issued 650,000 shares of common stock on that...

General Corporation was organized on January 1 and issued 650,000 shares of common stock on that date. On July 1, an additional 300,000 shares were issued for cash. Net income for the year was $4,570,000. Net earnings per share amounted to:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation of Weighted average number of shares outstanding

Details

Working

Number of shares

Beginning shares

(650000/12 x 12)

650000

Issued on July 1

(300000/12 x 6)

150000

Total weighted average number of shares

800000

Earnings per share

A

Net income

$ 4,570,000.00

B

Total weighted average number of shares

800000

C=A/B

Earnings per share

$                   5.71

Net earnings per share amounts to $ 5.71          

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
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 320,000 shares of convertible preferred stock. The preferred shares are convertible into 640,000 shares of common stock. During the year Ahnberg paid $192,000 cash dividends on the preferred stock. Net income was $2,362,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 180,000 shares of convertible preferred stock. The preferred shares are convertible into 360,000 shares of common stock. During the year Ahnberg paid $108,000 cash dividends on the preferred stock. Net income was $1,060,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)...
On January 1, Ivanhoe Corporation had 90,000 shares of no-par common stock issued and outstanding. The...
On January 1, Ivanhoe Corporation had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 25,000 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 2,500 additional shares of common stock for $20 per...
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 December 31, 2017, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares...
On December 31, 2017, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $450,000 and $74,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 64,000 common shares. In keeping with its long-term share repurchase plan, 7,000 shares were retired on July 1. Dow's net income...
Cricket Inc. had 400,000 shares of common stock outstanding on January 1, 2011 and issued 100,000...
Cricket Inc. had 400,000 shares of common stock outstanding on January 1, 2011 and issued 100,000 additional shares on July 1, 2011. There were $600,000 of preferred stock dividends declared and paid during the year. If net income for the year ended December 31, 2011 was $2,724,000, the earnings per share were:
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The...
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 25,000 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 2,000 additional shares of common stock for $19 per...
On January 1, Blossom Corporation had 93,000 shares of no-par common stock issued and outstanding. The...
On January 1, Blossom Corporation had 93,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $7 per share. During the year, the following occurred. Apr. 1 Issued 30,000 additional shares of common stock for $16 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, 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, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The...
On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr. 1 Issued 25,000 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 2,000 additional shares of common stock for $19 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT