The financial statements for Wesley Corp. included the following selected financial information from the stockholders' equity section of the balance sheet at the end of YEAR 1:
Common Stock, $.05 par value: $400,000
Additional Paid-in-Capital in excess of par: $71,600,000
Retained Earnings: $4,800,000
1.How many shares of common stock were issued during the year? Show your work.
2.Assume that all the stock was sold during the year. Prepare the journal entry to record the sale.
3.In year 2 assume the company had no additional sales of common stock.The company purchased 10,000 shares of their own common stock for $15 per share. Record the journal entry to record this purchase.
4.Assume the company declared and paid dividends of $500,000 during year 2. What was the amount of net income earned in year 2?
5.What is the amount of earnings per share in year 2?