On December 31,2012,Bugler Travel Inc.had 450,000 shares of no-par common stock issued and outstanding.All shares were sold for $7.50.On June 30,2013,Bugler issued an additional 135,000 shares for $7 per share.The 2013 income was $319,200.On September 1,2012,a 15 percent stock dividend was issued to all common shareholders.On October 1,2014,60,000 shares were reacquired as treasury shares.Net income in 2014 was $278,063.
(1)Compute the weighted-average number of common shares outstanding for 2013 and 2014 that should be shown on comparative statements at the end of 2014.
(2)Compute the basic earnings per share in 2013 and 2014 to be reported on Bugler's comparative statements at the end of 2014.

Question

Quizplus · Accepted Answer

The Answer of On December 31,2012,Bugler Travel Inc.had 450,000 shares of no-par common stock issued and outstanding.All shares were sold for $7.50.On June 30,2013,Bugler issued an additional 135,000 shares for $7 per share.The 2013 income was $319,200.On September 1,2012,a 15 percent stock dividend was issued to all common shareholders.On October 1,2014,60,000 shares were reacquired as treasury shares.Net income in 2014 was $278,063.
(1)Compute the weighted-average number of common shares outstanding for 2013 and 2014 that should be shown on comparative statements at the end of 2014.
(2)Compute the basic earnings per share in 2013 and 2014 to be reported on Bugler's comparative statements at the end of 2014.