Problem to be answered: On January 1, 2022, Berlin Corporation had 1,000,000 common shares authorized and 250,000 common shares issued and outstanding. Additionally, Berlin has 100,000 preferred shares authorized. During all of 2022, 20,000 shares of this $100 par 6% preferred stock were issued and outstanding. The following common stock activity occurred during 2022: April 1 Issued 50,000 shares June 1 Purchased 75,000 of its own shares and placed them in treasury August 1 Declared a 2-for-1 stock split December 1 Reissued 30,000 of the treasury shares purchased on June 1 On December 15, 2022, the Board of Directors declared the 6% preferred stock dividend and common stock dividends of $0.40 per share for all outstanding shares. The dividends will be paid on February 15, 2023. Berlin reported net income of $3,215,000 for 2022. Need help with these 3 questions. Thanka 1. Compute the weighted average number of shares to be used in computing basic earnings per share for 2022. 2. Compute basic earnings per share for 2022. 3. Prepare journal entry for the dividends declared in 2022.
Problem to be answered: On January 1, 2022, Berlin Corporation had 1,000,000 common shares authorized and 250,000 common shares issued and outstanding. Additionally, Berlin has 100,000 preferred shares authorized. During all of 2022, 20,000 shares of this $100 par 6% preferred stock were issued and outstanding. The following common stock activity occurred during 2022: April 1 Issued 50,000 shares June 1 Purchased 75,000 of its own shares and placed them in treasury August 1 Declared a 2-for-1 stock split December 1 Reissued 30,000 of the treasury shares purchased on June 1 On December 15, 2022, the Board of Directors declared the 6% preferred stock dividend and common stock dividends of $0.40 per share for all outstanding shares. The dividends will be paid on February 15, 2023. Berlin reported net income of $3,215,000 for 2022. Need help with these 3 questions. Thanka 1. Compute the weighted average number of shares to be used in computing basic earnings per share for 2022. 2. Compute basic earnings per share for 2022. 3. Prepare journal entry for the dividends declared in 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem to be answered:
On January 1, 2022, Berlin Corporation had 1,000,000 common shares authorized and 250,000 common shares issued and outstanding. Additionally, Berlin has 100,000 preferred shares authorized. During all of 2022, 20,000 shares of this $100 par 6% preferred stock were issued and outstanding. The following common stock activity occurred during 2022:
April 1 Issued 50,000 shares
June 1 Purchased 75,000 of its own shares and placed them in treasury
August 1 Declared a 2-for-1 stock split
December 1 Reissued 30,000 of the treasury shares purchased on June 1
On December 15, 2022, the Board of Directors declared the 6% preferred stock dividend and common stock dividends of $0.40 per share for all outstanding shares. The dividends will be paid on February 15, 2023.
Berlin reported net income of $3,215,000 for 2022.
Need help with these 3 questions. Thanka
1. Compute the weighted average number of shares to be used in computing basic earnings per share for 2022.
2. Compute basic earnings per share for 2022.
3. Prepare journal entry for the dividends declared in 2022.
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