Assume that the following transactions affected owners equity for De Soto Inc. during 2011. Feb. 1 Sold
Question:
Assume that the following transactions affected owners’ equity for De Soto Inc. during 2011.
Feb. 1 Sold 40,000 shares of common stock in the market.
Apr. 1 Purchased 3,000 shares of common stock to be held as treasury stock. Paid cash dividends of $0.50 per share.
May 1 Split common stock 2 for 1.
July 1 Sold 15,000 shares of common stock.
Oct. 1 Issued a 10% stock dividend.
Dec. 31 Paid a cash dividend of $0.70 per share. The total amount paid for dividends on December 31 was $407,330.
Compute the weighted-average number of shares to be used in computing basic EPS for 2011. Because no beginning share figures are available, you must work backward from December 31, 2011, to compute shares outstanding.
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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Computation of shares outstanding working backward Oct 1 to Dec 31 581900 July 1 to Oct 1 529000 May ...View the full answer
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
