I need help! I have no idea where to start when calculating the weighted average shares and earnings per share.

calculation of weighted average shares and earnings per share.

Part I: December Journal Entries

Record the following entries in general journal form for December 2021:

December 1: Recorded sales on account of $800,000, 3/15, net 30. Cost of inventory was $375,000. Panther Builders, Inc. uses the net method for accounting for sales.

December 2:Purchased Equipment for $400,000, paying $250,000 down and signed a 6%, 90-day note for the balance. This equipment will be depreciated using the double declining method over 9 years, and no salvage value.

December 3: Collected $611,000 on accounts.

December 4: Bought back 18,000 shares of stock for $13 per share.

December 5: Issued 10,000 shares of restricted stock to its CFO. The stock has a fair value of $160,000.The service period related to this restricted stock is 6 years. Vesting occurs if the CFO stays with the company for 6 years. The par value of the stock is $1.

December 6: Paid invoices total of $289,000 to its suppliers. The invoices related to inventory purchases that had been previously recorded.

December 7:Purchased inventory of $587,000 on account with terms 2/10 net 60. Panther Builders, Inc. uses the net method for its purchases.

December 8:Received payment related to sale on December 1.

December 9: Purchased equity securities, without the intention to sell in the near term, for $380,000, plus commissions of $3,800.

December 10: Paid off short-term note from 12/1 trial balance plus interest of $1,000.

December 11: Paid invoices of $712,000 to suppliers.

December 12:Issued 50,000 shares of common stock at $17.50 per share

December 14: Collected $850,000 on Account.

December 16: Paid invoice from 12/7.

December 17: Purchased $110,045 inventory on account with terms 2/15, net 30. Panther Builders, Inc. uses the net method for its purchases.

December 18: Collected $453,000 on Account.

December 19: Recorded sales on account of $850,000, 2/15, net 60, cost of inventory was $595,000.

December 20:Recorded sales on account of $635,000, terms 3/10, net 30, cost of merchandise inventory was $425,000.

December 21: Sold 12,500 shares of Treasury Stock for $15 per share.

December 24: Made payment of $52,000 towards long-term note payable of $500,000, which includes interest of $6,500.

December 26: Wrote off $18,600 in bad debt.

December 31: Signed a 6-year lease for equipment, fair value of $500,000. Equipment transfers to Panther Builders, Inc. at end of lease. Lease payments of 82,750 commence with signing of lease.

Part I: Adjusting Journal Entries

Record the following adjusting entries in general journal form as of December 31, 2021:

1. Supplies on hand at the end of the year:$5,016.
2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 7-year life, no salvage value and company uses double-declining balance method for its depreciation.
3. Don't forget to depreciate the new equipment, which is also depreciated using the DDB method!
4. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 that was purchased on 1/1/17. The new truck has an 8-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset.
5. The building is depreciated under the straight-line method over 39 years and was placed in service on July 1, 2018.
6. The machinery was purchased on December 1, 2020, has a 5-year useful life, salvage value of $4,000, and is being depreciated under the straight-line method.
7. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years.
8. Included in the Prepaid Insurance Account balance at 12/1 is a $75,000, 12-month insurance policy that was purchased on August 1, 2021.
9. Also included in the 12/1 trial balance (and the 12/31 TB) was an insurance policy that expired on 12/31/21.
10. Declared dividends of $350,000 on December 31.
11. The fair market value of the short-term investments is $12,500.
12. The total fair value of the Available for Sale Securities is $489,000.
13. 2% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.
14. Accrued salaries of $145,000 and accrued payroll taxes of 6.2%.
15. Had issued $2,500,000 of 4%, 10-year bond, dated 1/1/18 for $2,305,133 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. Extra credit of 5 points if a complete amortization table (all 10 years) is included. Partial extra credit may be awarded.
16. One month has passed since the issuance of restricted stock.
17. Interest on 30 days of short-term note payable, dated 12/2/21 should be accrued. (Assume 360 days in a year for calculation)
18. Income tax rate is 21%

Additional Information:

Panther Builders, Inc. was founded in Grand Rapids, Michigan in 2013 by Davenport University entrepreneurs. It is a private company with more than 40 employees. Its operations include providing household renovation services to homeowners and small businesses.

During 2021, the following additional transactions occurred: (Hint: these are already included in 12/1/21 TB, but may be needed for the Statement of Cash Flows and calculation of Weighted Average shares of Common Stock )

1.Issued 35,000 shares of common stock, $1 par, for $700,000 on June 30, 2021.

2.Some equipment was sold (original cost $10,000, book value $3,000) for $6,500 (do not consider in your #2 AJE). Confirm with the 12/1 Trial Balance!

3.All amortization and depreciation is recorded once a year on December 31.

4.Market price per share of stock at 12/31/2021 was $18.75.

Panther Builders, Inc. Adjusted Trial Balance Income Bal. Sheet December 31, 2021 Statement Stmt. Own. Equity Ac VT Description i E F Q F l g E Q 100 Cash S 3,310,788 S $ 3,310,788 101 Accounts Receivable S 1,756,720 $ 1,756,720 102 Allowance for Doubtful Accounts S 35,134 $ 35,134 103 Short-term Investments S 14,000 S $ 14,000 104 Fair Value Adjustment-ST S 1,500 $ 1,500 105 Inventory S 933,104 $ 933,104 106 Prepaid Insurance S 43,750 $ 43,750 107 Supplies S 5,016 $ 5,016 110 Availableforsale Investments S 483,800 $ 483,800 111 Fair Value Adjustment-AFS S 5,200 $ 5,200 120 Land S 1,135,000 $ 1,135,000 121 Building S 3,000,000 $ 3,000,000 122 Accumulated DepreciationBuilding S 346,154 $ 346,154 123 Machinery S 850,000 $ 850,000 124 Accumulated Depreciation Machinery S 183,300 $ 183,300 125 Equipment S 650,000 $ 650,000 126 Accumulated Depreciation Equipment S 203,924 $ 203,924 127 Truck S 56,500 $ 56,500 128 Accumulated Depreciation Truck S 48,167 $ 48,167 130 Right-ofuse Asset S 500,000 $ 500,000 175 Patents S 55,000 $ 55,000 201 Accounts Payable S 358,598 $ 358,598 202 Salaries Payable S 1,722,000 $ 1,722,000 203 Utilities Payable S 9,000 $ 9,000 204 Payroll Taxes Payable S 33,990 $ 33,990 205 Interest Payable S 50,750 $ 50,750 206 Dividends Payable S 350,000 $ 350,000 207 Note Payable short term S 150,000 $ 150,000 208 Income Tax Payable S 190,247 $ 190,247 220 Lease Liability S 417,250 $ 417,250 221 Note Payable |ong term S 454,500 $ 454,500 225 Bond Payable S 2,500,000 $ 2,500,000 226 Discount on Bond Payable S 128,224 $ 128,224 Common Stock, S1 par, S1M shares authorized; 235,000 shares 301 issued and outstanding S 295,000 $ 295,000 302 APIC Common Stock S 4,463,193 $ 4,463,193 303 Retained Earnings S 695,590 $ 695,590 304 Unrealized Gains (Losses) Equity S 5,200 $ 5,200 305 Unearned Compensation $ 157,778 $ 157,778 306 Treasury Stock S 71,500 $ 71 ,500 307 APIC Treasury Stock S 25,000 $ 25,000 401 Sales S 8,186,460 $ 8,186,460 500 Cost of Goods Sold S 4,550,000 $ 4,550,000 600 Compensation Expense S 2,222 $ 2,222 601 Salaries Expense S 2,045,000 $ 2,045,000 602 Bad Dept Expense S 23,734 $ 23,734 605 Payroll Tax Expense S 88,990 $ 88,990 606 Advertisting Expense S 125,000 $ 125,000 607 Insurance Expense S 121,250 $ 121 ,250 608 Supplies Expense S 22,989 $ 22,989 609 Depreciation Expense S 277,680 $ 277,680 610 Amortization Expense S 5,000 $ 5,000 611 Utilities Expense S 9,000 $ 9,000 612 Miscellaneous Expenses S 9,300 $ 9,300 614 Interest Expense S 126,165 $ 126,165 615 Income Tax Expense S 164,247 $ 164,247 617 Realized Gains (Losses) S 3,500 $ 3,500 620 Unrealized Gains (Losses) Income S 1,500 S $ 1,500 Totals S 20,728,458 S 20,728,457 $ 7,572,078 $ 8,189,960 $ 13 156 380 $ 12,529,497 Net Income S $ 617,882 $ 626,883 Totals $ 8,189,960 S 13,156,380 Supplies Expense 6,989 Supplies 6,989 Depreciaiton Expense 2 Depreciation Expense 18,594 Accumulated Depreciation - Equipment 18,594 3 Depreciation Expense 7,407 Accumulated Depreciation - Equipment 7,407 5,556 Accumulated Depreciation Truck Depreciation Expense 76,923 5,556 Accumulated Depreciation Building Depreciation Expense 169,200 76,923 Accumulated Depreciation - Machinery Amortization Expense 5,000 169,200 Patents Insurance Expense 31,250 5,000 Prepaid Insurance Insurance Expense 50,000 31,250 10 Prepaid Insurance Retained Earnings 350,000 50,000 11 Dividends Payable Unrealized Loss 1,500 350,000 12 Fair Value Adjustment Unrealized Gain 9,800 1,500 Fair Value Adjustment AFS 9,800 13 Bad Debt Expense 23,734 Allowance for Undoubtful Accounts 23,734 14 Salaries Expense 145,000 Salaries Payavle 145,000 Payroll Tax Expense 8,990 Payroll Tax Payable 8,990 16 Compensation Expense 15 Interest Expense 59,068 Discount on Bond Payable 9,068 Interest Payable 50,000 2,222 17 Unearned Compensation Interest Expense 750 2,222 18 Interest Payable Income Tax Expense 164,247 750 Income Tax Payable 164, 247 1,136,230 1,136,230 Date Acct Description DR CR 1-Dec Accounts Receivable To record sales on account $ 776,000 Sales $ 776,000 Cost of Goods Sold To record cost of goods sold $ 375,000 Inventory $ 375,000 2Dec Equipment To record purchase of equipment 5 400,000 Cash 5 250,000 Notes Payable - Short Term 5 150,000 3Dec Cash To record cost of goods sold $ 611,000 4Dec Accounts Receivable Treasury Stock To record buy back of shares $ 234,000 $ 611,000 Cash 5 234,000 5-Dec Unearned Compensation To record issue of restricted stock $ 160,000 Common Stock $ 10,000 Common Stock - Additional Paid in Capital $ 150,000 6Dec Accounts Payable To record amount paid to suppliers $ 289, 000 7-Dec Cash Inventory To record purchase on inventory account 5 575.260 $ 289,000 8-Dec Accounts Payable Cash To record cash collected $ 775,000 $ 575,260 9Dec Accounts Receivable Available for sale investments To record purchase of equity securities 5 383,800 $ 776,000 Cash 5 383,800 10Dec Notes Payable - short term To record amount paid $ 50,000 Interest Expense $ 1,000 Cash $ 51,000 11Dec Accounts Payable To record amount paid 5 712,000 Cash 5 712,000 12-Dec Cash To record issue of common stock $ 875,000 Common Stock $ 50,000 Common Stock - Additional Paid in Capital $ 825,000 14Dec Cash To record cash collected $ 850,000 16-Dec Accounts Receivable Accounts Payable To record amount paid 5 575.260 $ 850,000 17Dec Cash Inventory To record purchase of inventory on account $ 107, 844 $ 575,260 18Dec Accounts Payable Cash To record cash collected 5 453,000 $ 107,844 Accounts Receivable $ 453,000 19Dec Accounts Receivale To record sales on account $ 833,000 Sales $ 833,000 Cost of Goods Sold To record cost of goods sold $ 595,000 Inventory 5 595,000 20-Dec Accounts Receivable To record sales on account 5 615,950 Sales $ 615,950 Cost of Goods Sold To record cost of goods sold $ 425,000 Merchandise Inventory $ 425,000 21Dec Cash To record sale of treasury stock $ 187,500 Treasury Stock $ 162,500 Treasury Stock Additional Paid in Capital 5 25,000 24Dec Notes Payable - Long Term To record payment of long term notes payab $ 45,500 Interest Expense $ 6,500 Cash $ 52,000 ' 26Dec Allowance for Undoubtful Accounts To record bad debt write off $ 18,600 Accounts Receivable $ 18,600 31-Dec Right of use Asset To record lease liability $ 500,000 Lease Liability $ 500,000 Lease Liability To record payment of lease $ 82,750 Cash $ 82,750 $ 11,513,964 $ 11,513,964 Panther Builders, Inc Weighted Average Common Stock Dates Shares Fraction of Weighted Income Statement Shares Outstanding |Outstanding Year Shares Date Shares Changes For the Year Ended December 31, 2021 Outstanding Revenues Sales 8,186,460 Less: Cost of Goods Sold 4,550,000 Gross Profit 3,636,460 Operating Expenses Selling Expenses Compensation Expense 2,222 Salaries Expense 2,045,000 Advertisting Expense 125,000 Bad Dept Expense 23,734 Payroll Tax Expense 88,990 Total Selling Expenses 2,284,947 General & Administrative Expenses Insurance Expense 121,250 Supplies Expense 22,989 Depreciation Expense 277,680 Amortization Expense 5,000 Utilities Expense 9,000 Miscellaneous Expenses 9,300 Total General & Administrative Expenses 445,219 Total Operating Expenses 2,730,166 Income from Operations 906,294 Non-Operating Income (Expenses) Less: Interest Expense 126,165 Less : Realized Losses 3,500 Add : Unrealized Gain 1,500 Total Non-Operating Income (124,165) Net Income before Taxes 782,129 Less : Income Tax Expense 164,247 Net Income 617,882