Date 1-Mar 1-Apr 1-Jun 1-Jul 1-Nov 1-Dec Ace Corp. had 500,000 shares of common stock outstanding on January 1, 2020 During 2020 the following transactions occurred relating to common and preferred stock: Transaction Issued 100,000 shares of common Issued a 5% common stock dividend Acquired 50,000 shares of treasury stock-common Issued a 2 for 1 common stock split Reissued 40,000 shares of treasury stock-common Declared and paid the annual cash dividend on the outstanding preferred stock Ace earned net income of $4,500,000 during 2020. Ace had 200,000 shares of 8%, $50 par cumulative preferred stock issued and outstanding for the entire year. Required: 1. Provide the weighted average number of common shares outstanding as of 12/31/20 and show your calculations using Excel formulas etc. 2. Calculate basic earnings per share for the year
Date 1-Mar 1-Apr 1-Jun 1-Jul 1-Nov 1-Dec Ace Corp. had 500,000 shares of common stock outstanding on January 1, 2020 During 2020 the following transactions occurred relating to common and preferred stock: Transaction Issued 100,000 shares of common Issued a 5% common stock dividend Acquired 50,000 shares of treasury stock-common Issued a 2 for 1 common stock split Reissued 40,000 shares of treasury stock-common Declared and paid the annual cash dividend on the outstanding preferred stock Ace earned net income of $4,500,000 during 2020. Ace had 200,000 shares of 8%, $50 par cumulative preferred stock issued and outstanding for the entire year. Required: 1. Provide the weighted average number of common shares outstanding as of 12/31/20 and show your calculations using Excel formulas etc. 2. Calculate basic earnings per share for the year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Date
1-Mar
1-Apr
1-Jun
1-Jul
1-Nov
1-Dec
Ace Corp. had 500,000 shares of common stock outstanding on January 1, 2020
During 2020 the following transactions occurred relating to common and preferred stock:
Transaction
Issued 100,000 shares of common
Issued a 5% common stock dividend
Acquired 50,000 shares of treasury stock-common
Issued a 2 for 1 common stock split
Reissued 40,000 shares of treasury stock-common
Declared and paid the annual cash dividend on the outstanding preferred stock
Ace earned net income of $4,500,000 during 2020. Ace had 200,000 shares of 8%, $50 par cumulative preferred stock issued and
outstanding for the entire year.
Required:
1. Provide the weighted average number of common shares outstanding as of 12/31/20 and show your calculations using Excel
formulas etc.
2. Calculate basic earnings per share for the year
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