E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial | |||
reporting. The company is authorized to issue |
9,000,000 | shares of | $10 |
par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities. |
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1. Number of common shares issued and outstanding at December 31, 2012 |
2,000,000 | ||
2. Shares issued as a result of a 10% stock dividend on September 30, 2013 |
200,000 | ||
3. Shares issued for cash on March 31, 2014 |
2,000,000 | ||
Number of common shares issued and outstanding at December 31, 2014 |
4,200,000 | ||
4. A 2-for-1 stock split of Gogean’s common stock took place on March 31, 2015 |
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Instructions: | |||
(a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. |
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Text title | Formula | ||
Text title | Percentage | ||
Text title | Formula | ||
Text title | Formula | ||
Shares outstanding |
Formula | ||
(b) Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement. |
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Text title | Formula | ||
Text title | Formula | ||
Shares outstanding |
Formula | ||
(c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement. |
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Text title | Formula | ||
Text title | Number | ||
Shares outstanding |
Formula | ||
(d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement. |
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Text title | Number | ||
Text title | Number | ||
Text title | Formula | ||
Text title | Formula | ||
Shares outstanding |
Formula |