The weighted average number of common shares, Accounting Basics

On December 31, 2003, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 2004, the firm issued an additional 135,000 shares for $7 per share. The 2004 income was $319,200. On Sept 1, 2005, a 15 percent stock dividend was issued to all common shareholders. On Oct 1, 2005, 60,000 shares were reacquired as treasury shares. Net income in 2005 was $278,063.

(1)    Compute the weighted average number of common shares outstanding for 2004 and 2005 that should be shown on comparative statements at the end of 2005.

(2)    Compute the basic earnings per share in 2004 and 2005 to be reported on comparative statements at the end of 2005.

Posted Date: 3/14/2013 6:25:24 AM | Location : United States







Related Discussions:- The weighted average number of common shares, Assignment Help, Ask Question on The weighted average number of common shares, Get Answer, Expert's Help, The weighted average number of common shares Discussions

Write discussion on The weighted average number of common shares
Your posts are moderated
Related Questions
I submitted an assignment this morning and have heard nothing back

Q. What is sales transaction? - In a sales transaction the seller transmits the legal ownership (title) of the goods to the buyer. - An invoice is a document prepared by the


Q. Define an accounting system? Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to br

HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL100 words accepted#

Q. What do you mean by Inventory turnover? Inventory turnover -- a ratio which indicates amount of inventory a company uses tosupport a given level of sales. Formula is: Invent

Q. What are Bad debts? Bad debts -- amounts owed to a company which aren't going to be paid. An accountreceivable becomes a bad debt when it's recognized that it won't be paid.

Mission statement for PCAOB and AICPA and how it contributed to GAAP 2-3 pages APA style

Q. What do you mean by Capitalize? Capitalize -- to capitalize means to record an expenditure on balance sheet as an asset,to be amortized over the future. Opposite is to expen

Fund flow deals with transaction within financial year (One year) while Cash flow Statement record only the cash transaction.