QUESTION: Calculate the weighted Average Shares (all information is added)

Journal Entries:

December 1: Recorded sales on account of $800,000, 3/15, net 30. Cost of inventory was $375,000. Panther Builders, Inc. uses the net method for accounting for sales.

December 2: Purchased Equipment for $400,000, paying $250,000 down and signed a 6%, 90-day note for the balance. This equipment will be depreciated using the double declining method over 9 years, and no salvage value.

December 3: Collected $611,000 on accounts.

December 4: Bought back 18,000 shares of stock for $13 per share.

December 5: Issued 10,000 shares of restricted stock to its CFO. The stock has a fair value of $160,000. The service period related to this restricted stock is 6 years. Vesting occurs if the CFO stays with the company for 6 years. The par value of the stock is $1.

December 6: Paid invoices total of $289,000 to its suppliers. The invoices related to inventory purchases that had been previously recorded.

December 7: Purchased inventory of $587,000 on account with terms 2/10 net 60. Panther Builders, Inc. uses the net method for its purchases.

December 8: Received payment related to sale on December 1.

December 9: Purchased equity securities, without the intention to sell in the near term, for $380,000, plus commissions of $3,800.

December 10: Paid off short-term note from 12/1 trial balance plus interest of $1,000.

December 11: Paid invoices of $712,000 to suppliers.

December 12: Issued 50,000 shares of common stock at $17.50 per share

December 14: Collected $850,000 on Account.

December 16: Paid invoice from 12/7.

December 17: Purchased $110,045 inventory on account with terms 2/15, net 30. Panther Builders, Inc. uses the net method for its purchases.

December 18: Collected $453,000 on Account.

December 19: Recorded sales on account of $850,000, 2/15, net 60, cost of inventory was $595,000.

December 20: Recorded sales on account of $635,000, terms 3/10, net 30, cost of merchandise inventory was $425,000.

December 21: Sold 12,500 shares of Treasury Stock for $15 per share.

December 24: Made payment of $52,000 towards long-term note payable of $500,000, which includes interest of $6,500.

December 26: Wrote off $18,600 in bad debt.

December 31: Signed a 6-year lease for equipment, fair value of $500,000. Equipment transfers to Panther Builders, Inc. at end of lease. Lease payments of 82,750 commence with signing of lease.

Adjusting entries:

1. Supplies on hand at the end of the year: $5,016.
2. Equipment shown on the 12/1 TB was purchased on 1/1/17, has a 7-year life, no salvage value and company uses double-declining balance method for its depreciation.
3. Dont forget to depreciate the new equipment, which is also depreciated using the DDB method!
4. Included in the truck balance is a fully depreciated truck for $6,500 and a new truck valued at $50,000 that was purchased on 1/1/17. The new truck has an 8-year life, no salvage value and the company uses the sum-of-the-years digits for its depreciation method on this asset.
5. The building is depreciated under the straight-line method over 39 years and was placed in service on July 1, 2018.
6. The machinery was purchased on December 1, 2020, has a 5-year useful life, salvage value of $4,000, and is being depreciated under the straight-line method.
7. The patent was purchased on 1/1/2013 for $100,000 and its useful life is 20 years.
8. Included in the Prepaid Insurance Account balance at 12/1 is a $75,000, 12-month insurance policy that was purchased on August 1, 2021.
9. Also included in the 12/1 trial balance (and the 12/31 TB) was an insurance policy that expired on 12/31/21.
10. Declared dividends of $350,000 on December 31.
11. The fair market value of the short-term investments is $12,500.
12. The total fair value of the Available for Sale Securities is $489,000.
13. 2% of Accounts Receivable is estimated to be uncollectible. Company uses the allowance method for estimating its uncollectible accounts.
14. Accrued salaries of $145,000 and accrued payroll taxes of 6.2%.
15. Had issued $2,500,000 of 4%, 10-year bond, dated 1/1/18 for $2,305,133 when the market rate was 5%. Interest is paid on June 30 and January 1 using the effective interest rate method. The June payment is included in the Dec. 1 TB. .
16. One month has passed since the issuance of restricted stock.
17. Interest on 30 days of short-term note payable, dated 12/2/21 should be accrued. (Assume 360 days in a year for calculation)
18. Income tax rate is 21%

Additional Information:

• During 2021, the following additional transactions occurred: (Hint: these are already included in 12/1/21 TB, but may be needed for the Statement of Cash Flows and calculation of Weighted Average shares of Common Stock )

1. Issued 35,000 shares of common stock, $1 par, for $700,000 on June 30, 2021.
2. Some equipment was sold (original cost $10,000, book value $3,000) for $6,500 (do not consider in your #2 AJE). Confirm with the 12/1 Trial Balance!
3. All amortization and depreciation is recorded once a year on December 31.
4. Market price per share of stock at 12/31/2021 was $18.75.

Income Statement Cr CR Dr. DR 3,310,788.00 1,756,720.00 35,134.40 14,000.00 1,500.00 Acct 100 101 102 103 104 105 106 107 110 111 120 121 122 123 124 125 126 127 128 12 933,104,10 43,750.00 5,016,00 483,800.00 5,200.00 1,135,000.00 3,000,000.00 346,154.08 850,000.00 183,300.00 Adjusted Trial Balance December 31, 2021 Description Cash Accounts Recelvable Allowance for Doubtful Accounts Short-term Investments Fair Value Adjustment-ST Inventory Prepaid Insurance Supplies Available-for-sale Investments Fair Value Adjustment-AFS Land Building Accumulated Depreciation-Building Machinery Accumulated Depreciation Machinery Equipment Accumulated Depreciation Equipment Truck Accumulated Depreciation Truck Right-of-use Asset Patents Accounts Payable Salaries Payable Utilities Payable Payroll Taxes Payable Interest Payable Dividends Payable Note Payable-short term Income Tax Payable Lease Liability Note Payable-long term Bond Payable Discount on Bond Payable Bal. Sheet Stmt. Own. Equity Dr. Cr 3,310,788.00 1.756.720.00 35,134.40 14,000.00 1.500.00 933, 104.10 43,750.00 5,018.00 483,800.00 5,200.00 1,135,000.00 3,000,000.00 346,154.08 850,000.00 183,300.00 650,000.00 203,923.85 56,500.00 48,166.56 500,000.00 55,000.00 358,598.10 1,722,000.00 9,000.00 33,990.00 50 750.00 350,000.00 150,000.00 190.247.00 417.250.00 454,500.00 2.500,000.00 128,224.00 650,000.00 203,923.85 56,500.00 48,166.56 130 500,000.00 55,000.00 175 201 202 203 204 205 206 207 208 220 221 225 226 358,598.10 1,722,000.00 9,000.00 33,990.00 50,750.00 350,000.00 150,000.00 190,247.00 417,250.00 454,500.00 2,500,000.00 128,224.00 295,000.00 4,463,193.00 695,590.00 295,000.00 4.463,193.00 695,590.00 5,200.00 5,200.00 157.777.78 71,500.00 157.777.78 71.500.00 25,000.00 8,186,460.00 25,000.00 8,186.460.00 Common Stock, $1 par, $1M shares authorized; 235,000 shares issued and 301 outstanding 302 APIC Common Stock 303 Retained Earnings 304 Unrealized Gains (Losses) Equity 305 Unearned Compensation 306 Treasury Stock 307 APIC Treasury Stock 401 Sales 500 Cost of Goods Sold 600 Compensation Expense 601 Salaries Expense 602 Bad Dept Expense . 605 Payroll Tax Expense 606 Advertising Expense 607 Insurance Expense 608 Supplies Expense 609 Depreciation Expense 610 Amortization Expense 611 --- Utilities Expense 612 Miscellaneous Expenses 614 Interest Expense 615 Income Tax Expense 617 Realized Gains (Losses) 620 Unrealized Gains/Losses) Income Totals 4,550,000.00 2,222.22 2,045,000.00 23,734.40 88,990.00 125,000.00 121,250.00 22,989.00 277,679.48 5,000.00 9,000.00 9,300.00 126,165.00 164,247.00 4.550,000.00 2.222.22 2.045,000.00 23,734.40 88.990.00 125,000.00 121.250.00 22.989.00 76700 277 679.48 5,000.00 9,000.00 9.300.00 126 165.00 164 247.00 3,500.00 3.500.00 1,500.00 20.728,456.98 20.728,456.98 1,500.00 7,572,077.11 (617,882.89) 8,189,960.00 13,156,379.88 12,538.498.98 617,882.89 Welghted Average Common Stock Dates Shares Outstanding Outstanding Fraction of Year Welghted Shares Panther Builder's, Inc. Multiple-Step Income Statement For the year ended December 31, 2021 Date Shares Changes Shares Outstanding Revenues: Sales Cost of Goods Sold Gross Profit Margins 8,186,460.00 4,550,000.00 3,636,460.00 125,000.00 Less Operating Expense Selling & Distribution Expense Advertising Expense General and Administrative Expenses Supplies Expense Salaries Expense Compensation Expense Utilities Expense Bad Dept Expense Payroll Tax Expense Insurance Expense Depreciation Expense Amortization Expense Miscellaneous Expenses Interest Expense Total General & Administrating Expenses Operating Income Non-Operating or Other Realized Gains (Losses) Unrealized Gains (Losses) Income Total Non-Operating or Other 22,989.00 2,045,000.00 2,222.22 9,000.00 23,734.40 88,990.00 121,250.00 277,679.48 5,000.00 9,300.00 126,165.00 2,731,330.11 780,129.89 3,500.00 1,500.00 2,000.00 Earning Before Income Tax Income Tax Expense 778,129.89 164,247.00 164,247.00 Net Income 613,882.89 Income Statement Cr CR Dr. DR 3,310,788.00 1,756,720.00 35,134.40 14,000.00 1,500.00 Acct 100 101 102 103 104 105 106 107 110 111 120 121 122 123 124 125 126 127 128 12 933,104,10 43,750.00 5,016,00 483,800.00 5,200.00 1,135,000.00 3,000,000.00 346,154.08 850,000.00 183,300.00 Adjusted Trial Balance December 31, 2021 Description Cash Accounts Recelvable Allowance for Doubtful Accounts Short-term Investments Fair Value Adjustment-ST Inventory Prepaid Insurance Supplies Available-for-sale Investments Fair Value Adjustment-AFS Land Building Accumulated Depreciation-Building Machinery Accumulated Depreciation Machinery Equipment Accumulated Depreciation Equipment Truck Accumulated Depreciation Truck Right-of-use Asset Patents Accounts Payable Salaries Payable Utilities Payable Payroll Taxes Payable Interest Payable Dividends Payable Note Payable-short term Income Tax Payable Lease Liability Note Payable-long term Bond Payable Discount on Bond Payable Bal. Sheet Stmt. Own. Equity Dr. Cr 3,310,788.00 1.756.720.00 35,134.40 14,000.00 1.500.00 933, 104.10 43,750.00 5,018.00 483,800.00 5,200.00 1,135,000.00 3,000,000.00 346,154.08 850,000.00 183,300.00 650,000.00 203,923.85 56,500.00 48,166.56 500,000.00 55,000.00 358,598.10 1,722,000.00 9,000.00 33,990.00 50 750.00 350,000.00 150,000.00 190.247.00 417.250.00 454,500.00 2.500,000.00 128,224.00 650,000.00 203,923.85 56,500.00 48,166.56 130 500,000.00 55,000.00 175 201 202 203 204 205 206 207 208 220 221 225 226 358,598.10 1,722,000.00 9,000.00 33,990.00 50,750.00 350,000.00 150,000.00 190,247.00 417,250.00 454,500.00 2,500,000.00 128,224.00 295,000.00 4,463,193.00 695,590.00 295,000.00 4.463,193.00 695,590.00 5,200.00 5,200.00 157.777.78 71,500.00 157.777.78 71.500.00 25,000.00 8,186,460.00 25,000.00 8,186.460.00 Common Stock, $1 par, $1M shares authorized; 235,000 shares issued and 301 outstanding 302 APIC Common Stock 303 Retained Earnings 304 Unrealized Gains (Losses) Equity 305 Unearned Compensation 306 Treasury Stock 307 APIC Treasury Stock 401 Sales 500 Cost of Goods Sold 600 Compensation Expense 601 Salaries Expense 602 Bad Dept Expense . 605 Payroll Tax Expense 606 Advertising Expense 607 Insurance Expense 608 Supplies Expense 609 Depreciation Expense 610 Amortization Expense 611 --- Utilities Expense 612 Miscellaneous Expenses 614 Interest Expense 615 Income Tax Expense 617 Realized Gains (Losses) 620 Unrealized Gains/Losses) Income Totals 4,550,000.00 2,222.22 2,045,000.00 23,734.40 88,990.00 125,000.00 121,250.00 22,989.00 277,679.48 5,000.00 9,000.00 9,300.00 126,165.00 164,247.00 4.550,000.00 2.222.22 2.045,000.00 23,734.40 88.990.00 125,000.00 121.250.00 22.989.00 76700 277 679.48 5,000.00 9,000.00 9.300.00 126 165.00 164 247.00 3,500.00 3.500.00 1,500.00 20.728,456.98 20.728,456.98 1,500.00 7,572,077.11 (617,882.89) 8,189,960.00 13,156,379.88 12,538.498.98 617,882.89 Welghted Average Common Stock Dates Shares Outstanding Outstanding Fraction of Year Welghted Shares Panther Builder's, Inc. Multiple-Step Income Statement For the year ended December 31, 2021 Date Shares Changes Shares Outstanding Revenues: Sales Cost of Goods Sold Gross Profit Margins 8,186,460.00 4,550,000.00 3,636,460.00 125,000.00 Less Operating Expense Selling & Distribution Expense Advertising Expense General and Administrative Expenses Supplies Expense Salaries Expense Compensation Expense Utilities Expense Bad Dept Expense Payroll Tax Expense Insurance Expense Depreciation Expense Amortization Expense Miscellaneous Expenses Interest Expense Total General & Administrating Expenses Operating Income Non-Operating or Other Realized Gains (Losses) Unrealized Gains (Losses) Income Total Non-Operating or Other 22,989.00 2,045,000.00 2,222.22 9,000.00 23,734.40 88,990.00 121,250.00 277,679.48 5,000.00 9,300.00 126,165.00 2,731,330.11 780,129.89 3,500.00 1,500.00 2,000.00 Earning Before Income Tax Income Tax Expense 778,129.89 164,247.00 164,247.00 Net Income 613,882.89