Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2010. On May 1, Tomba

Question:

Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2010. On May 1, Tomba issued 30,000 shares.

(a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash.

(b) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a stock dividend.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...