| 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 |
