On Jan 1, 2020 Lala Cor. had 100,000 shares of common stock outstanding. During...
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Accounting
On Jan 1, 2020 Lala Cor. had 100,000 shares of common stock outstanding. During 2020, it had the following transactions that affected the common stock account:
April
1:
Issued 50,000 Shares.
May
1:
Issued a 10% stock dividend.
August
1:
Acquired 40,000 share of treasury stock.
November
1:
Issued a 5-for-1 stock split.
December
1:
Reissued 30,000 shares of treasury stock.
Instructions:
1- Determine the weighted-average number of shares outstanding as of December 31, 2020. (5 Points)
2- Assume the net income of the company is $6000,000 and the preferred dividends $1000,000. Compute EPS. (2.5 Points)
On Jan 1, 2020 Lala Cor. had 100,000 shares of common stock outstanding. During 2020, it had the following transactions that affected the common stock account:
April | 1: | Issued 50,000 Shares. |
May | 1: | Issued a 10% stock dividend. |
August | 1: | Acquired 40,000 share of treasury stock. |
November | 1: | Issued a 5-for-1 stock split. |
December | 1: | Reissued 30,000 shares of treasury stock. |
Instructions:
1- Determine the weighted-average number of shares outstanding as of December 31, 2020. (5 Points)
2- Assume the net income of the company is $6000,000 and the preferred dividends $1000,000. Compute EPS. (2.5 Points)
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