Jenks Corp

question 66

Essay

Jenks Corp. began the year with 200,000 shares of common stock and 30,000 shares of 7%, $100 par value, cumulative, nonconvertible preferred stock. On March 1 it declared a 5% stock dividend on common shares. On June 30, it purchased 10,000 shares of treasury stock. On October 1, Jenks declared a 2 for 1 stock split. Net income for the year was $650,000. Compute weighted average shares of common stock for the year and basic EPS.
Instructions: Write the EPS formula. Show all computations used in your solution.

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Definitions:

Payrolls Tax

Payrolls Tax is a tax imposed on employers based on the salary and wages paid to employees, which can encompass federal, state, and local taxes.

Marital Status

A legal term that denotes whether a person is married, single, divorced, widowed, or separated.

Withholding Allowances

Exemptions claimed by an individual on a W-4 form to reduce the amount of income tax withheld from their paycheck.

Types Of Earnings

Types of earnings refer to the various measures of income a company generates, such as net income, operating income, and earnings before interest and taxes (EBIT).