EPS
What is the eps equation?
net income / outstanding shares
What is treasury stock?
Stock the company buys back.
Subtracted from Outstanding Stock.
What is common stock?
Stock a company issues to the public.
Company X reported net income of 1,000,000 on December 31st 2023. They issued and outstanding 150,000 shares.What is EPS?
$6.67 / share
Company B bought back 25,000 shares for $20 on May 3rd. What is the journal entry for May 3rd?
DR Treasury Stock 500,000
CR Cash 500,000
Company X issues 15,000 shares, $1 par value, for $50 on May 3rd, what is the journal entry?
DR Cash 750,000
CR Common Stock 15,000
CR PIC EP CS 735,000
Company X has the right to issue a total of 200,000 shares, Company X reported net income of 1,000,000 on December 31st 2023. They issued 150,000 and bought back 25,000. What is their EPS?
$8 / share
Company B bought back 25,000 shares for $20 on May 3rd. Then resold 15,000 of those shares for $40 on August 1st. What is the journal entry for August 1st?
DR Cash 600,000
CR PIC TS 300,000
CR Treasury Stock 300,000
What is the 2 journal entries for these - what is the difference:
1)Company X issues 10,000 shares, par value $1, for $20.
2)Company X issues 10,000 shares for $20.
1)
DR Cash 200,000
CR Common Stock 10,000
CR PIC EP CS 190,000
2)
DR Cash 200,000
CR Common Stock 200,000