Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  1.  Determine the weighted-average number of shares outstanding as of December 31, 2019. 
  1. Assume the net income of the company is $100,000 and the preferred dividends $30,000. Compute EPS.
  1. 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?

Step by Step Solution

3.53 Rating (150 Votes )

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_2

Step: 3

blur-text-image_3

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

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292

More Books

Students also viewed these Accounting questions