Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Newt 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

Newt 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.

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 Newt's common stock took place on March 31, 2015

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.

(b) Compute the weighted average number of common shares used in compting earnings per common share for 2014 on the 2014 comparative income statement.

(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.

(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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Iso 9000 Auditors Companion

Authors: Kent A. Keeney

1st Edition

0873893247, 978-0873893244

More Books

Students also viewed these Accounting questions