On Dec 31, 2007, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30 2008, the firm issed an additional 135,000 shares for $7 per share. The 2008 income was $319,200. On Sept 1 2008 a 15 percent stock dividend was issued to all common shareholders. On Oct 1 2009, 60,000 shares were reacquired as treasury shares. Net income in 2009 was $278,063.
a) Compute the weighted everage number of common shares outstanding for 2008 and 2009 that should be shown on comparative statements at the end of 2009
b) Compute the basic earnings per share in 2008 and 2009 to be reported on comparative statements at the end of 2009