Turks Corporation held 450,000 shares of no-par common stock issued and outstanding on January 1, 2018. The firm then issued an additional 135,000 shares for $7 per share, on June 30 that same year. The company’s 2018 income was $319,200, which was an exceptionally good year reflecting good market capitalization. On September 1, 2019, a 15 percent stock dividend was issued to all common shareholders. Sixty thousand (60,000) shares were reacquired as treasury shares; and the company had a net income in the amount of $278,063 on October 1, 2019.
Required: A. Explain the following:
(i) basic earnings per share
(ii) diluted earnings per share
(iii) potential ordinary shares
B. Compute the weighted-average number of common shares outstanding for 2018 and 2019
that should be shown on comparative statements at the end of 2019.
C. Compute the basic earnings per share in 2018 and 2019 to be reported on
comparative statements at the end of 2019.
Get Free Quote!
334 Experts Online