During 2010, Wells Corporation reported a net income of $1,338,400. On January 1, Wells had 720,000 shares

Question:

During 2010, Wells Corporation reported a net income of $1,338,400. On January 1, Wells had 720,000 shares of common stock outstanding. The company issued an additional 480,000 shares of common stock on August 1. In 2010, the company had a simple capital structure. During 2011, there were no transactions involving common stock, and the company reported net income of $1,740,000. Determine the weighted-average number of common shares outstanding for 2010 and 2011. Also compute earnings per shares for 2010 and 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...