Earnings Per Share Calculations Information Provided: Common Shares Balance at the beginning of the year On July 1, the company sold an additional 5,000,000 shares 8000,000 shares Each share sold for 3.00 and had a parvalue of s a10 Preferrred Shares Beginningof the Year 50,000 End of the Year 150,000 Dividends paid to Preferred shareholders Dividends paid to Common Sharehol ders 650, 000 1,000, 000 Exceptfrom Income Statement Income from Continuing Ope rations Income from Discontinued Operations (after taximpac) 22,000, 000 2,100,000 24,100, 000 Net Income Required: Based on the Information provided above; 1 Prepare the Joumal entry to record the July 1 sale of shares 2 Calculate the welghted average common shares outstandi ng 3 Calculate e arnings pershare (as required). Note:Show your detal led calaulations.
Earnings Per Share Calculations Information Provided: Common Shares Balance at the beginning of the year On July 1, the company sold an additional 5,000,000 shares 8000,000 shares Each share sold for 3.00 and had a parvalue of s a10 Preferrred Shares Beginningof the Year 50,000 End of the Year 150,000 Dividends paid to Preferred shareholders Dividends paid to Common Sharehol ders 650, 000 1,000, 000 Exceptfrom Income Statement Income from Continuing Ope rations Income from Discontinued Operations (after taximpac) 22,000, 000 2,100,000 24,100, 000 Net Income Required: Based on the Information provided above; 1 Prepare the Joumal entry to record the July 1 sale of shares 2 Calculate the welghted average common shares outstandi ng 3 Calculate e arnings pershare (as required). Note:Show your detal led calaulations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Earnings Per Share Calculati ons
Informatlon Provlded:
Common Shares
Balance at the beginning of the ye ar
On July 1, the company sold an additional
5,000,000 shares
8,000,000 shares
Each share sold for
$3.00 and had a par value of $ 0.10
Preferrred Shares
Beginning of the Year
End of the Year
50,000
150,000
Dividends pald to Preferred Shareholders
Dividends pald to Common Sharehol ders
650, 000
1,000, 000
Ex ce pt from Income Statement
Income from Continuing Operations
22,000, 000
Income from Discontinued Ope rations (aftertaxImpact)
2,100, 000
Net Income
24,100, 000
Requlred:
Based on the Information provided above:
1 Prepare the Joumal entry to record the July 1 sale of shares
2 Calculate the welghted average common shares outstandi ng
3 Calculate e arnings pershare (as required).
Note: Show your detal led calaulatlons.
Expert Solution
Step 1
Journal Entry
| DATE | PARTICULAR | DEBIT | CREDIT |
| JULY 1 | Cash (8,000,000 x3) | 24,000,000 | |
| Common stock (8,000,000 x 0.10) | 800,000 | ||
| Additional paid in capital (8,000,000 x 2.90) | 23,200,000 |
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