Question
Tery Co had the following ordinary share activity during the current year: Shares January 1 Outstanding 500,000 March 1 New shares issued 60,000 June 1
Tery Co had the following ordinary share activity during the current year:
| Shares | ||
| January 1 | Outstanding | 500,000 |
| March 1 | New shares issued | 60,000 |
| June 1 | 2 for 1 split | 560,000 |
| November 1 | Treasury shares acquired | 48,000 |
Outstanding throughout the year are the 200,000 cumulative preference shares with a par value of $20. The preference dividend rate is 10%. The entity reported a net income of $5,860,000 for the current year.
- Determine the average ordinary shares outstanding.
- Determine the basic earnings per share.
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
Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
3rd edition
77826485, 978-0077722074, 77722078, 978-0077826482
