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  3. on january 1, 2021, monty corp. had 459,000 shares

On January 1, 2021, Monty Corp. had 459,000 shares of common stock outstanding. During 2021,...

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Accounting

On January 1, 2021, Monty Corp. had 459,000 shares of common stock outstanding. During 2021, it had the following transactions that effected the Common Stock account.

February 1 Issued 123,000 shares

March 1 Issued a 10% stock dividend

May 1 Acquired 101,000 shares of treasury stock

June 1 Issued a 3-for-1 stock split

October 1 Reissued 57,000 shares of treasury stock


Required

a. Determine the weighted-average number of shares outstanding as of December 31, 2021.

b. Assume the Monty Corp. earned net income of $3,577,000 during 2021. In addition, it had 95,000 shares of the 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).

c. Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021. 

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