On January 1, 2018, Shamu Corporation had 100,000 shares of common stock outstanding. The following...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2018, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2018:
March
1:
Reacquired 3,600 shares, accounted for as treasury stock.
September
30:
Sold all the treasury shares.
December
1:
Sold 12,600 new shares for cash.
December
31:
Reported a net income of $204,500.
The following transactions occurred during 2019:
January
10:
Declared and issued a 30% stock dividend.
December
31:
Reported a net income of $274,800.
Required: Calculate Shamu's basic earnings per share for both years for presentation in comparative financial statements that will be prepared at the end of 2019. (Round your answers to 2 decimal places.)
2018 2019 Earnings per share 1.59 S 1.89
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
