13 14 QUESTION 5 Earnings per share (EPS) Is calculated based on the weighted-average number of common shares: A.in the treasury. B. outstanding 1D. issued. QUESTION 6 As of April 15, 2011, Baylor Software, Inc. has issued 500,000 of its 1,000,000 authorized shares of $20 par value common stock, of which 40,000 shares have been reacquired as treasury stock. On April 15, 2012, the board of directors declared a cash dividend of $1.70 per share to be paid on May 20 to stockholders of record on May 5. The journal entry, If any, for April 15 would include: @A a debit to Retained Earnings of $850,000. B. no entry is required on this date. @ C a credit to Dividends Payable of $782,000 D. a credit to Stock Dividends Distributable of $782,000. QUESTION 7