Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,810,000 shares of $12 par common stock. At no time
Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,810,000 shares of $12 par common stock. At no time has Sarasota issued any potentially dilutive securities. Listed below is a summary of Sarasotas common stock activities.
1. | Number of common shares issued and outstanding at December 31, 2018 | 1,850,000 | ||
2. | Shares issued as a result of a 12% stock dividend on September 30, 2019 | 222,000 | ||
3. | Shares issued for cash on March 31, 2020 | 2,180,000 | ||
Number of common shares issued and outstanding at December 31, 2020 | 4,252,000 | |||
4. | A 2-for-1 stock split of Sarasotas common stock took place on March 31, 2021 |
|
Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started