Bellevue Inc.’s shareholders’ equity accounts were as follows at the beginning of the current fiscal year,...

Bellevue Inc.’s shareholders’ equity accounts were as follows at the beginning of the current fiscal year, August 1, 2017:

$1 noncumulative preferred shares (92,000 shares issued)		$2,300,000
Common shares (385,000 shares issued)		3,850,000
Retained earnings		2,550,000
Total shareholders’ equity		$8,700,000

During the year, the following selected transactions occurred:

Oct.	1	Reacquired 24,000 common shares for $18 per share.
Dec.	1	Issued 63,000 common shares for $23 per share.
Feb.	1	Issued 9,200 common shares for $24 per share.
June	20	Declared the annual preferred cash dividend to shareholders of record on July 10, payable on July 31.
July	31	Net income for the year ended July 31, 2018, was $1,218,000.

Calculate the weighted average number of common shares for the year.

Weighted Average Number of Shares

Calculate the basic earnings per share. (Round answer to 2 decimal place e.g. 5.25.)

Basic Earnings per Share

Would your answer to the basic earnings per share calculated above change if the preferred share dividend had not been declared on June 20? (Round answer to 2 decimal place e.g. 5.25.)

Basic Earnings per Share

During the year, the following selected transactions occurred:

Oct.	1	Reacquired 24,000 common shares for $18 per share.
Dec.	1	Issued 63,000 common shares for $23 per share.
Feb.	1	Issued 9,200 common shares for $24 per share.
June	20	Declared the annual preferred cash dividend to shareholders of record on July 10, payable on July 31.
July	31	Net income for the year ended July 31, 2018, was $1,218,000.

Solutions

Expert Solution

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ekkarill92 answered 2 days ago

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