Weighted Average SharesJumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet:Preferred stock, $100 par value, 6% cumulative, 30,000 shares authorized 1,000 shares issued and outstanding$100,000Common stock, $10 par value, 150,000 shares authorized 50,000 shares issued and outstanding500,000Jumbo Corporation engaged in the following stock transactions during 2019:Mar. 1Issued 10,000 shares of common stock for cash.Apr. 1Purchased 2,000 shares of common stock as treasury stock.Aug. 1Resold 1,000 shares of treasury stock.Sept. 1Declared and distributed a 50% stock dividend on common stock.Required: 1. Does Jumbo Corporation have a simple or complex capital structure? Simple capital 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement. Round your answer to the nearest whole number. fill in the blank 2 shares Feedback

As First part is answered in question itself so answering the second sub part.

Answered: Jumbo Corporation reported the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Weighted Average Shares

Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet:

Preferred stock, $100 par value, 6% cumulative, 30,000 shares authorized 1,000 shares issued and outstanding	$100,000
Common stock, $10 par value, 150,000 shares authorized 50,000 shares issued and outstanding	500,000

Jumbo Corporation engaged in the following stock transactions during 2019:

Mar. 1	Issued 10,000 shares of common stock for cash.
Apr. 1	Purchased 2,000 shares of common stock as treasury stock.
Aug. 1	Resold 1,000 shares of treasury stock.
Sept. 1	Declared and distributed a 50% stock dividend on common stock.

Required:

1. Does Jumbo Corporation have a simple or complex capital structure?
Simple capital

2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement. Round your answer to the nearest whole number.
fill in the blank 2 shares

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