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On January 1, 2018, Teal Corp. had 501,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account.

February 1		Issued 126,000 shares
March 1		Issued a 10% stock dividend
May 1		Acquired 101,000 shares of treasury stock
June 1		Issued a 3-for-1 stock split
October 1		Reissued 57,000 shares of treasury stock

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Part 1

627000

(501000+126000)

689700

(627000*1.1)

588700

(689700-101000)

1766100

(588700*3)

1823100

(1766100+57000)

Part 2

Earnings per share = net income - preferred dividend / Weighted average shares = (3308000-0)/1846750 = 1.79

Part 3

Earnings per share = net income - preferred dividend / Weighted average shares = (3308000-(99000*100*8%)) /1846700 = 1.36

Part 4

Net income........ 3308000.

Add: loss from discontinued operations...... 427000

Income from continuing operations...... 3735000

EPS :

Income from continuing operations (3735000/1846750)...2.02

Loss from discontinued operations (427000/1846750)...(0.23)

Net income = 1.79

Event	dates outstanding	shares outstanding	stock dividend restatement	stock split restatement	number of months	÷ 12 months	Weighted shares
Beginning balance	Jan 1 - Feb 1	501000	1.1	3.0	1	12	137775
Issued shares	Feb 1 - March 1	627000 (501000+126000)	1.1	3.0	1	12	172475
Stock dividend	March 1 - may 1	689700 (627000*1.1)		3.0	2	12	344850
Reacquired shares	may 1 - June 1	588700 (689700-101000)		3.0	1	12	147175
Stock split	June 1 - October 1	1766100 (588700*3)			4	12	588700
Reissued shares	Oct 1 - 1 December 31	1823100 (1766100+57000)			3	12	455775
		Weighted number of shares outstanding					1846750

LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT On January 1, 2018, Teal Corp. had 501,000 shares of common stock outstanding. During 2018, it had the follo

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