Question

On January 1, 2021, Kingbird Corp. had 468,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 115,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 96,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 63,000 shares of treasury stock

Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding enter the weighted-average number of shares outstanding as of December 31, 2018

Assume that Kingbird Corp. earned net income of $3,288,000 during 2021. In addition, it had 105,000 shares of 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). (Round answer to 2 decimal places, e.g. $2.55.) Earnings Per Share $enter earnings per share rounded to 2 decimal places

Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings Per Share $enter earnings per share rounded to 2 decimal places

Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $411,000 (net of tax). Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Kingbird Corp. Income Statement choose the accounting period December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 select an opening name for this statement DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a dollar amount per share rounded to 2 decimal places select an income statement item DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues enter a dollar amount per share rounded to 2 decimal places select a closing name for this statement DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues enter a total earnings per share amount rounded to 2 decimal places Click if you would like to Show Work for this question: Open Show Work

Answer 1

1) Calculation of Weighted average number of shares

	Date outstanding	No. of shares	Stock dividend restatement	Stock split restatement	Fraction of year	Weighted average shares
Beginning balance	Jan 1-Feb 1	468000	1.10	3	1/12	128700
Issued shares	Feb 1-Mar 1	(468000+115000)= 583000	1.10	3	1/12	160325
Stock dividend	Mar 1-May 1	(583000*1.10)= 641300	-	3	2/12	320650
Reacquired shares	May 1-June 1	(641300-96000)= 545300	-	3	1/12	136325
Stock split	June 1-Oct 1	(545300*3)= 1635900	-	-	4/12	545300
Reissued shares	Oct 1-Dec 31	(1635900+63000)= 1698900	-	-	3/12	424725
Weighted average number of shares						1716025

2) Earning per share= Net income/Weighted average number of shares

= $3288000/1716025= $1.92 per share

3) Preferred dividend= 105000*$100*9%= $945000

Earning per share= (Net income-Preferred dividend)/Weighted average number of shares

= ($3288000-945000)/1716025= $1.37 per share

4)

Kingbird Corp.
Income Statement
For the Year Ended December 31, 2021
Income From Continuing Operations (3288000+411000/1716025)		$2.16
Loss From Discontinued Operations (411000/1716025)		(0.24)
Net Income / (Loss)		$1.92

NOTE:- Please rate the answer and for any problem regarding the answer please ask in the comment section.