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Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,400,000 shares of $10 par common stock. At no time
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,400,000 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, 2018 | 2,050,000 | ||
2. | Shares issued as a result of a 10% stock dividend on September 30, 2019 | 205,000 | ||
3. | Shares issued for cash on March 31, 2020 | 1,810,000 | ||
Number of common shares issued and outstanding at December 31, 2020 | 4,065,000 | |||
4. | A 2-for-1 stock split of Newton's common stock took place on March 31, 2021 |
(a) Your answer is correct. Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. shares 2,255,000 (b) x Your answer is incorrect. Try again. Compute the weighted average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement. 2101250 shares (a) Your answer is correct. Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. shares 2,255,000 (b) x Your answer is incorrect. Try again. Compute the weighted average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement. 2101250 shares
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