Question 1

Listed below are details regarding common shares outstanding for four different companies:

1. Johnson Corporation had 120,000 common shares outstanding on January 1, 2017. On April 1, 10,000 common shares were issued for cash.

2. Barrett Corporation had 120,000 common shares outstanding on January 1, 2017. On April 1, 10,000 common shares were issued for cash. On August 1, a 3-for-1 stock split was declared.

3. Hartford Corporation had 120,000 common shares outstanding on January 1, 2017. On April 1,10,000 common shares were reacquired by Hartford.

4. Vickers Corporation had 120,000 common shares outstanding on January 1, 2017. On April 1, 10,000 common shares were issued for cash. On June 1, a 12% stock dividend was declared. On November 1, 15,000 common shares were issued for cash.

Instructions

(a) Calculate the weighted average number of common shares outstanding for 2017 (for the purposes of calculating EPS) for each of the independent situations above.

(b) Calculate the number of common shares outstanding to be reported on the statement of financial position at December 31, 2017, for Vickers Corporation (situation 4).