Question
Exercise 19-13 (Algo) EPS; treasury stock; new shares; stock dividends; two years, financial statement effects [LO19-5, 19-6] The Li Group had 280,000 shares of common
Exercise 19-13 (Algo) EPS; treasury stock; new shares; stock dividends; two years, financial statement effects [LO19-5, 19-6]
The Li Group had 280,000 shares of common stock outstanding at January 1, 2024. The following activities affected common shares during the year. There are no potential common shares outstanding.
| 2024 | |
|---|---|
| February 28 | Purchased 12,000 shares of treasury stock. |
| October 31 | Sold the treasury shares purchased on February 28. |
| November 30 | Issued 48,000 new shares. |
| December 31 | Net income for 2024 is $1,242,000. |
| 2025 | |
| January 15 | Declared and issued a 2-for-1 stock split. |
| December 31 | Net income for 2025 is $1,242,000. |
Required:
- Determine the 2024 EPS.
- Determine the 2025 EPS.
- At what amount will the 2024 EPS be presented in the 2025 comparative financial statements?
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
With an explanation if possible!
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Frank Woods Business Accounting Volume 1
Authors: Alan Sangster Lewis Gordon Frank Wood
14th Edition
1292208627, 9781292208626
