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ACC 311 Lecture Notes - Lecture 10: Treasury Stock, Issued Shares, Retained Earnings

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greyscorpion970
19 Oct 2017
School
UT-Austin
Department
Accounting
Course
ACC 311
Professor
D Johnston- Blair

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Document Summary

Acc 311 - ch 11 in class and audio notes 1. 8. Outstanding shares: issued and owned by shareholders: authorized issued + unissued. Issued shares: treasury shares, shares that have been bought back or reacquired, no longer in circulation, outstanding shares, total issued treasury = outstanding. Issued shares = treasury + outstanding: earnings per share = net income / average number of shares outstanding for the period. If there are preferred dividends, the amount is subtracted from net income: earnings per share, avg number of shares outstanding= beginning shares outstanding + ending shares outstanding / 2. In the past, it was a protection for creditors" claims: doesn"t hold much value anymore, par value does not equal market value, market value = current share price (how much stock is selling for, retained earnings: Income not distributed to shareholders in the form of dividends. Equity investment the purchase of stock in another corporation: recorded as an increase in assets.

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Related Questions

Weighted Average Shares

At the beginning of 2014, Hardin Company had 330,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:

March 1 Issued 43,000 shares of stock at $24 per share.
June 1 Issued a 10% stock dividend.
July 1 Issued 11,000 shares of stock at $29 per share.
Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.
Oct. 31 Reacquired 99,000 shares as treasury stock at a cost of $32 per share.
Nov. 30 Reissued 52,000 treasury shares at a price of $35 per share.

Required:

1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number.
shares

2. Determine the number of common shares outstanding at December 31, 2014.
shares

Weighted Average Shares-At the beginning of the current year, Hardin Company had 20,000 shares of $10 per common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year end it had 63,800 shares outstanding: April 1 Issued 5,000 shares of stock. June 1, Issued 4,000 shares of stock July 1, Issued a 10% stock dividend Sept 30, Issued a 2-for-1 stock split, reducing the par value to $5 per share. Oct. 1 Reacquired 1,000 shares as treasury stock Nov 30, Reissued the 1,000 shares of treasury stock. REQUIRED: Determine the weighted average number of shares outstanding for computing the current earnings per share.

Weighted Average Shares-At the beginning of the current year, Hardin Company had 20,000 shares of $10 per common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year end it had 63,800 shares outstanding: April 1 Issued 5,000 shares of stock. June 1, Issued 4,000 shares of stock July 1, Issued a 10% stock dividend Sept 30, Issued a 2-for-1 stock split, reducing the par value to $5 per share. Oct. 1 Reacquired 1,000 shares as treasury stock Nov 30, Reissued the 1,000 shares of treasury stock. REQUIRED: Determine the weighted average number of shares outstanding for computing the current earnings per share