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Question: On Jan 1, 2021, Gulf Company had 700,000 shares of common stock outstanding. During...

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Accounting

Question: On Jan 1, 2021, Gulf Company had 700,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the common stock account:

1/4/2021

1:

Issued 20,000 Shares.

1/5/2021

1:

Issued a 25% stock dividend.

1/8/2021

1:

Acquired 150,000 share of treasury stock.

1/11/2021

1:

Issued a 3-for-1 stock split.

1/12/2021

1:

Reissued 80,000 shares of treasury stock.

Instructions:

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

Assume the net income of the company is $5000,000 and the preferred dividends $100,000. Compute EPS.

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