Tomba Corporation had 300,000 common shares outstanding on January 1, 2014. On May 1, Tomba issued 30,000

Question:

Tomba Corporation had 300,000 common shares outstanding on January 1, 2014. On May 1, Tomba issued 30,000 shares.

(a) Calculate the weighted average number of shares outstanding for the year ended December 31, 2014, if the 30,000 shares were issued for cash.

(b) Calculate the weighted average number of shares outstanding for the year ended December 31, 2014, if the 30,000 shares were issued in a stock dividend.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...