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Homework answers / question archive / The Common Stock account for Alpha Corporation on January 1, 2019 was $37,500
The Common Stock account for Alpha Corporation on January 1, 2019 was $37,500. On June 1, 2019 Alpha issued an additional 2,500 shares of common stock. The Common Stock is $5 par. There was neither Preferred Stock nor any Treasury Stock, Paid in Capital Excess to par Common Stock was $10,000 on January 1 and $15,000 on June 2 and retained earnings was $104,700. Use this information to determine for December 31, 2019 the amount of:
a) Total Stockholders Equity
b) Earnings per Share
a) Total stockholder's equity = $169,700
b) Computation of the earnings per share:-
Weighted average number of shares = ($37,500/$5) + (2,500*5/12)
= 7,500 + 1,042
= 8,542 shares
Earnings per share = Net income / Weighted average number of shares
= $104,700 / 8,542
= $12.26 per share
