Question
Blossom Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no
Blossom Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no time has Blossom issued any potentially dilutive securities. The following is a summary of Blossoms common share activities:
Number of common shares issued and outstanding at December 31, 2018 | 6,000,000 | ||
Shares issued as a result of a 5% stock dividend on September 30, 2019 | 300,000 | ||
Shares issued for cash on March 31, 2020 | 2,000,000 | ||
Number of common shares issued and outstanding at December 31, 2020 | 8,300,000 |
Blossom issued its 2020 financial statements on February 28, 2021. A 2for1 stock split of Blossoms common shares occurred on March 31, 2021.
a) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2019 on the 2019 comparative income statement.
b) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2019 on the 2020 comparative income statement.
c) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2020 on the 2020 comparative income statement.eTextbook and Media
d) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2020 on the 2021 comparative income statement.
e) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2021 on the 2021 comparative income statement.
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