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E16-15 (Weighted-Average Number of Shares) Edison Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par
E16-15 (Weighted-Average Number of Shares) Edison 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 Edison issued any potentially dilutive securities. Listed below is a summary of Edison's common stock activities. | ||||||
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 Gogeans common stock took place on March 31, 2015 | ||||||
Instructions: Fill in each chart entry for A B C D and show calculations | ||||||
(a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. | ||||||
common shares issued | 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. | ||||||
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. | ||||||
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. | ||||||
Text title | Number | |||||
Text title | Number | |||||
Text title | Formula | |||||
Text title | Formula | |||||
Shares outstanding | Formula |
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