9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The sto…

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Textbook Question

Chapter 19, Problem 19.12E

EPS; shares issued; stock dividend

• LO19–5, LO19–6

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January 1, 2018, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2018:

Apr. 30	Sold 60,000 shares in a public offering
May 24	Declared and distributed a 5% stock dividend
June 1	Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary

Required:

Compute Norstar’s earnings per share for the year ended December 31, 2018.

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Chapter 19, Problem 19.11E

Chapter 19, Problem 19.13E

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Intermediate Accounting

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