Question

In: Accounting

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

On January 1, 2021, Shamrock Corp. had 459,000 shares of common stock outstanding. During 2021, it had the following transactions that affected 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

Part 1

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

Part 2

Assume that Shamrock Corp. earned net income of $3,577,000 during 2021. In addition, it had 95,000 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

Part 3

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

Submit Answer

Part 4

Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $413,000 (net of tax). Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)

Shamrock 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

Solutions

Expert Solution

a) Weighted Average Shares Outstanding

b) Earnings Per Share = Net Income / Weighted Average Number of Shares Outstanding = $3,577,000/ 1,699,025 = $ 2.11

c) Preferred Dividend = 95,000*$100*9% = $855,000

Earnings Per Share = (Net Income - Preferred Dividend) / Weighted Average Number of Shares Outstanding = ($3,577,000 - $855,000)/ 1,699,025 = $1.60

d)


Related Solutions

On January 1, 2018, Oriole Corp. had 459,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Oriole Corp. had 459,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 126,000 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 62,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average number of shares outstanding Assume...
On January 1, 2021, Kingbird Corp. had 468,000 shares of common stock outstanding. During 2021, it...
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...
On January 1, 2021, Sweet Corp. had 482,000 shares of common stock outstanding. During 2021, it...
On January 1, 2021, Sweet Corp. had 482,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 126,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 104,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 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...
On January 1, 2021, Windsor Corp. had 465,000 shares of common stock outstanding. During 2021, it...
On January 1, 2021, Windsor Corp. had 465,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 126,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 102,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 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...
On January 1, 2021, Sweet Corp. had 479,000 shares of common stock outstanding. During 2021, it...
On January 1, 2021, Sweet Corp. had 479,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 117,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 59,000 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...
L Company had 500,000 shares of common stock outstanding on January 1, 2021. During 2021, it...
L Company had 500,000 shares of common stock outstanding on January 1, 2021. During 2021, it had the following transactions that affected the common stock account: February 1st – issued 90,000 shares March 1st – issued a 10% stock dividend June 1st – issued a 2-for-1 stock split Required: Determine the weighted-average number of shares outstanding as of December 31, 2021 (round to whole numbers). Assume that L Company had net income of $2,500,000 during 2021. In addition, it had...
Corp. had 468,000 shares of common stock outstanding. During 2021, it had the following transactions that...
Corp. had 468,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. On January 1, 2021, Coronado 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...
On January 1, 2021, Buffalo Corp. had 472,000 shares of commonstock outstanding. During 2021, it...
On January 1, 2021, Buffalo Corp. had 472,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.February 1Issued 125,000 sharesMarch 1Issued a 10% stock dividendMay 1Acquired 100,000 shares of treasury stockJune 1Issued a 3-for-1 stock splitOctober 1Reissued 63,000 shares of treasury stocka) The weighted-average number of shares outstandingb) Assume that Buffalo Corp. earned net income of $3,568,000 during 2021. In addition, it had 101,000 shares of 9%, $100 par nonconvertible, noncumulative...
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 114,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 60,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2018.
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 114,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 60,000 shares of treasury stock a. Determine the weighted-average number of shares outstanding as of December 31, 2018. b. Assume that Coronado Corp. earned...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT