Question
Headland Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,680,000 shares of $10 par common stock. At no time
Headland Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,680,000 shares of $10 par common stock. At no time has Headland issued any potentially dilutive securities. Listed below is a summary of Headlands common stock activities.
| 1. | Number of common shares issued and outstanding at December 31, 2015 | 2,000,000 | ||
| 2. | Shares issued as a result of a 10% stock dividend on September 30, 2016 | 200,000 | ||
| 3. | Shares issued for cash on March 31, 2017 | 1,940,000 | ||
| 4. Number of common shares issued and outstanding at December 31, 2017 | 4,140,000 | |||
|
| A 2-for-1 stock split of Headland's common stock took place on March 31, 2018
(A)Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement. _____________shares (B)Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement. ___________shares |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
