Question
On 1/1/2019 Jawed corporation had 10,000 of ordinary shares (C.S) outstanding. During 2019, it had the following transactions that affected the ordinary shares account: March
On 1/1/2019 Jawed corporation had 10,000 of ordinary shares (C.S) outstanding. During 2019, it had the following transactions that affected the ordinary shares account:
March 15: | Issued 30,000 Shares. |
June 1: | Issued a 20% stock dividend. |
July 1: | Acquired 5,000 share of treasury stock. |
September 1: | Issued a 10-for-1 stock split. |
December 1: | Reissued 4,000 shares of treasury stock. |
Instructions:
- Determine the weighted-average number of shares outstanding as of December 31, 2019.
- Assume the net income of the company is $100,000 and the preferred dividends $30,000. Compute EPS.
- If the company on November 1 transferred $100,000 Bonds to 5,000 ordinary shares:
What would be the total shares at that date only?
Define this type of bonds and clarify its impact on the earning per share?
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