Question
These were the transactions with common shares of a company in 2022: 1. On January 1, there were 400,000 shares outstanding. 2. February 1: The
These were the transactions with common shares of a company in 2022: 1. On January 1, there were 400,000 shares outstanding. 2. February 1: The company issued 120,000 new shares. 3. May 1: 180,000 new shares were issued 4. June 1: The company issued a 2:1 stock split. 5. July 1: The company issued 300,000 new shares 6. September 1: An additional 300,000 shares were issued 7. December 1: The company declared and issued a 20% stock dividend REQUIRED: a. Compute the weighted average number of common shares outstanding for 2022. Show ALL your computations. b. BONUS (4 points): Suppose that in February of 2023, before the financial statements for 2022 were published, the company declared and issued a 50% stock dividend. Explain if This transaction will have an effect on the 2022 average number of common shares.
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