Question
The common stock of a company had many transactions during the year 2022. These were the transactions and additional information: 1. On January 1, there
The common stock of a company had many transactions during the year 2022. These were the transactions and additional information: 1. On January 1, there were 240,000 shares outstanding. 2. On March 1, the company issued an additional 72,000 shares 3. On June 1, the company issued an additional 84,000 shares 4. On July 21, because the stock price was rising very rapidly, the company made a 2:1 share split (stock split) 5. On August 1, the company issued an additional 90,000 shares 6. On October 1, the company issued an additional 48,000 shares 7. On November 15, the company distributed a 15% stock dividend (stock dividend) 8. On December 1, the company bought 132,000 treasury stocks. 9. On December 31, the company sold to its employees the 132,000 shares it had bought on december 1st.
Calculate the weighted average number of common shares outstanding for purposes of calculating the basic earnings per share for the year 2022.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started