Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Comparative Earnings per Share Lucas Company reports net income of $2,520 for the year ended December 31, 2019, its first year of operations. On

image text in transcribed
1. Comparative Earnings per Share Lucas Company reports net income of $2,520 for the year ended December 31, 2019, its first year of operations. On January 4, 2019, Lucas issued 9,000 shares of common stock. On August 2, 2019, it issued an additional 3,600 shares of stock, resulting in 12,600 shares outstanding at year-end. During 2020, Lucas earned net income of $18,120. It issued 3,000 additional shares of stock on March 3, 2020, and declared and issued a 2-for-1 stock split on November 3, 2020, resulting in 31,200 shares outstanding at year-end. During 2021, Lucas earned net income of $29,952. The only common stock transaction during 2021 was a 20% stock dividend issued on July 2, 2021. If required, round your final answers to two decimal places. Required: 1. Compute the basic earnings per share that would be disclosed in the 2019 annual report. Vetcome - 29 20 $1 .24 per share (9.000X + 12 VODX 5112) = 10500 To so 2. Compute the 2019 and 2020 comparative basic earnings per share that would be disclosed in the 2020 annual report. (12 600X2X1 +212,0D+ S000) *zym +131200x1112) 2020 - $ 1 00 per share 42001 20800 52.00 - 20 2019: $! -12 per share _18120 30200.60 3. Compute the 2019, 2020, and 2021 comparative basic earnings per share that would be disclosed in the 2021 annual report. Net income 29asa 1 112) 2021: Sl 0.80 per Share (31 260XT.x 12+ [131200+ (31200 * = 31200 x 1.2x6112 + 374408-12 2020: per share - 18720 + 187770 = 37440 2019: $ per share 0.24 = 0.12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Data Processing Controls And Auditing

Authors: W.Thomas Porter

1st Edition

0534009336, 978-0534009335

More Books

Students also viewed these Accounting questions

Question

explain what is meant by the terms unitarism and pluralism

Answered: 1 week ago