FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, 2021, Wilke Corp. had 480,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the common stock account.
| February 1 |
1Issued 120,000 shares
|
| March 1 |
1Issued a 10% stock dividend
|
| May 1 |
1Acquired 100,000 shares of
|
| June 1 |
1Issued a 3-for-1 stock split
|
| October 1 |
1Reissued 60,000 shares of treasury stock
|
Instructions
a. Determine the weighted-average number of shares outstanding as of December 31, 2021.
b. Assume that Wilke Corp. earned net income of $3,456,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative
c. Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021.
d. Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $432,000 (net of tax). Compute earnings per share for 2021.
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