At January 1, 2014, Stevenson Inc. had the following shares authorized and issued:
During 2014, Stevenson had the following share transactions:
Feb 1 Issued 5,000 preferred shares.
Apr 1 Issued 20,000 common shares.
Aug 1 Issued 18,000 common shares.
Dec 1 Issued 6,000 common shares.
On December 31, Stevenson declared a $9 per share dividend on all issued preferred shares. Stevenson's 2014 profit was $435,000.
Instructions
a. Calculate the weighted average number of common shares in 2014.
b. Calculate the profit available to common shareholders for 2014.
c. Calculate the 2014 earnings per share.

Question

At January 1, 2014, Stevenson Inc. had the following shares authorized and issued:  
During 2014, Stevenson had the following share transactions:
Feb 1 Issued 5,000 preferred shares.
Apr 1 Issued 20,000 common shares.
Aug 1 Issued 18,000 common shares.
Dec 1 Issued 6,000 common shares.
On December 31, Stevenson declared a $9 per share dividend on all issued preferred shares. Stevenson's 2014 profit was $435,000.
Instructions 
a. Calculate the weighted average number of common shares in 2014.
b. Calculate the profit available to common shareholders for 2014.
c. Calculate the 2014 earnings per share.

Quizplus · Accepted Answer

The Answer of At January 1, 2014, Stevenson Inc. had the following shares authorized and issued:  
During 2014, Stevenson had the following share transactions:
Feb 1 Issued 5,000 preferred shares.
Apr 1 Issued 20,000 common shares.
Aug 1 Issued 18,000 common shares.
Dec 1 Issued 6,000 common shares.
On December 31, Stevenson declared a $9 per share dividend on all issued preferred shares. Stevenson's 2014 profit was $435,000.
Instructions 
a. Calculate the weighted average number of common shares in 2014.
b. Calculate the profit available to common shareholders for 2014.
c. Calculate the 2014 earnings per share.