The Alford Group had 202,000 shares of common stock outstanding at January 1, 2018. The following activities

Question:

The Alford Group had 202,000 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 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 2018 is $400,000

2019

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

Dec. 31 Net income for 2019 is $400,000

Required:

1. Determine the 2018 EPS.

2. Determine the 2019 EPS.

3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

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...