Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. At January 1, 2021, Cloudy Corporation had the following share capital: S2 Preferred shares, noncumulative, 500,000 shares authorized, 1,000 shares issued $650,000 Common shares,

6. At January 1, 2021, Cloudy Corporation had the following share capital:
S2 Preferred shares, noncumulative,
500,000 shares authorized, 1,000 shares issued
$650,000
Common shares, 1,000,000 shares authorized,
10,000 shares issued 250,000
5900,000
On July 1, 2021, the board of directors declared and paid a 10% common stock dividend. On
October 1, 2021, the company sold an additional 20,000 common shares for proceeds of $280,000.
The corporation earned $150,000 during the year and declared $30,000 in dividends to preferred
shareholders.
For the purpose of calculating the earnings per share, the company's weighted
average number of common shares is_____?

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

Employee Relations Audits

Authors: C. Jennings, W. E. J. McCarthy, R. Undy

1st Edition

0415786614, 978-0415786614

More Books

Students also viewed these Accounting questions