W2 Individual Assignment E16-9

W2 Individual Assignment E16-9 - Instructions Compute...

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E16-19 (EPS: Simple Capital Structure) At January 1, 2008, Langley Company’s outstanding shares included the following. 280,000 shares of $50 par value, 7% cumulative preferred stock 900,000 shares of $1 par value common stock Net income for 2008 was $2,530,000. No cash dividends were declared or paid during 2008. On February 15, 2009, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2008. On April 1, 2008, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2008, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock.
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Unformatted text preview: Instructions Compute earnings per share for 2008. Assume that financial statements for 2008 were issued in March 2009. Dates Shares % Weighted Outstanding Outstanding of Year Shares Opening balance 01/01/08 04/01/08 900,000 0.25 225,000 Issued shares 04/01/08 10/01/08 1,350,000 0.50 675,000 Reacquired shares 10/01/08 12/31/08 1,240,000 0.25 310,000 Weighted average unadj: 1,210,000 Stock dividend: 1.05 Weighted average: 1,270,500 Net Income: 2,530,000 Preferred dividend: (980,000) 1,550,000 2008 Earnings Per Share: $1.22...
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This note was uploaded on 02/22/2012 for the course ACC 101 taught by Professor Black during the Spring '12 term at University of Phoenix.

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