Question

In: Accounting

The Alford Group had 240,000 shares of common stock outstanding at January 1, 2021. The following...

The Alford Group had 240,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.

2021

Feb. 28 Purchased 30,000 shares of treasury stock.

Oct. 31 Sold the treasury shares purchased on February 28.

Nov. 30 Issued 120,000 new shares.

Dec. 31 Net income for 2021 is $1,495,000.

2022

Jan. 15 Declared and issued a 2-for-1 stock split.

Dec. 31 Net income for 2022 is $1,495,000.

Required:

1. Determine the 2021 EPS. (Do not round intermediate calculations.)

2. Determine the 2022 EPS.

3. At what amount will the 2021 EPS be presented in the 2022 comparative financial statements?

Solutions

Expert Solution


Related Solutions

The Alford Group had 250,000 shares of common stock outstanding at January 1, 2021. The following...
The Alford Group had 250,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.    2021 Feb. 28 Purchased 3,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 12,000 new shares. Dec. 31 Net income for 2021 is $1,494,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2022...
The Alford Group had 260,000 shares of common stock outstanding at January 1, 2021. The following...
The Alford Group had 260,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.    2021 Feb. 28 Purchased 6,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 24,000 new shares. Dec. 31 Net income for 2021 is $1,419,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2022...
The Alford Group had 310,000 shares of common stock outstanding at January 1, 2018. The following...
The Alford Group had 310,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.    2018 Feb. 28 Purchased 21,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 84,000 new shares. Dec. 31 Net income for 2018 is $909,000. 2019 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2019...
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...
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...
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, 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...
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...
On January 1, 2021, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions...
On January 1, 2021, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2021: March 1: Reacquired 2,300 shares, accounted for as treasury stock. September 30: Sold all the treasury shares. December 1: Sold 11,300 new shares for cash. December 31: Reported a net income of $191,500. The following transactions occurred during 2022: January 10: Declared and issued a 30% stock dividend. December 31: Reported a net income of $261,800. Required: Calculate Shamu's basic earnings...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT