Question 1

International Cake Corp issued 15 million shares of $1 par common stock for $465M on June 19, 2017. On November 1, 2017, the Board of Directors declared a $0.20 dividend per share of common stock. The date of record was November 10 and the dividend was to be paid on November 20. Record all transactions in journal form that are related to the above events.

Question 2

At the end of 2018, International Cake Corp income statement showed Net Income of $3,500,000. For the year, International Cake Corp paid $500,000 of preferred dividends. Also, the company issued another 6 million shares of common stock on August 1 of 2028. Calculate weighted average earnings per share. Make sure to be able show the calculations of all numbers going into both the numerator and denominator.