Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Newton Inc. uses a calendar year for financial reporting. Listed below is a summary of Newtons common stock activities. At no time has Newton issued

Newton Inc. uses a calendar year for financial reporting. Listed below is a summary of Newtons common stock activities. At no time has Newton issued any potentially dilutive securities.
Number of common shares authorized 9,000,000
Par value of common stock $ 10.00

Number of common shares issued and outstanding at December 31, 2015 2,000,000
Shares issued as a result of a 10% stock dividend on September 30, 2016 200,000
Shares issued for cash on March 31, 2017 2,000,000
Number of common shares issued and outstanding at December 31, 2017 4,200,000

A 2-for-1 stock split of Newtons 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 2016 on the 2017 comparative income statement.
(b) Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement.
(c) 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.
(d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 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

Survey of Accounting

Authors: Carl S. Warren

7th edition

1285974360, 1285183487, 9781285974361, 978-1285183480

More Books

Students also viewed these Accounting questions