On January 1, 2021, Novak Corp. had 480,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 119,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 97,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 shares of treasury stock 1). Determine the weighted-average number of shares outstanding as of December 31, 2021. 2). Assume that Novak Corp. earned net income of $3,362,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a 3). Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021 4). Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $447,000 (net of tax). Compute earnings per share for 2021.
On January 1, 2021, Novak Corp. had 480,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 119,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 97,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 shares of treasury stock 1). Determine the weighted-average number of shares outstanding as of December 31, 2021. 2). Assume that Novak Corp. earned net income of $3,362,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a 3). Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021 4). Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $447,000 (net of tax). Compute earnings per share for 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23P
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On January 1, 2021, Novak Corp. had 480,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.
| February 1 | Issued 119,000 shares | |
| March 1 | Issued a 10% stock dividend | |
| May 1 | Acquired 97,000 shares of |
|
| June 1 | Issued a 3-for-1 stock split | |
| October 1 | Reissued 61,000 shares of treasury stock |
1). Determine the weighted-average number of shares outstanding as of December 31, 2021.
2). Assume that Novak Corp. earned net income of $3,362,000 during 2021. In addition, it had 100,000 shares of 9%, $100 par nonconvertible, noncumulative
3). Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021
4). Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $447,000 (net of tax). Compute earnings per share for 2021.
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