On January 1, 2019, Warren Corporation had 500,000 shares of common stock outstanding. On Apr 1,...

On January 1, 2019, Warren Corporation had 500,000 shares of common stock outstanding. On Apr 1, the corporation issued 100,000 new shares to raise additional capital. On June 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 300,000 of its own outstanding shares and retired them.

Instructions

Compute the weighted average number of shares to be used in computing earnings per share for 2019.

Solutions

Expert Solution

	Increase / (decrease)	Outstanding	Months Outstanding		Share Months
Jan 1	-	500,000	3	2/1	3,000,000
Apr 1	100,000	600,000	2	2/1	2,400,000
June 1	600,000	1,200,000	4		4,800,000
Oct 1	(300,000)	900,000	3		2,700,000
					12,900,000

The weighted average number of shares			1,075,000
(12,900,000 ÷ 12)

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On January 1, 2018, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1,...

On January 1, 2018, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 160,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 520,000 of its own outstanding shares and retired them. Compute the weighted average number of shares to be used in computing earnings per share for 2018. Weighted average number of shares

On January 1, 2019, UMB Corporation had 1,000,000 shares of common stock outstanding. On April 1,...

On January 1, 2019, UMB Corporation had 1,000,000 shares of common stock outstanding. On April 1, the corporation issued 200,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On Nov. 1, the corporation purchased 600,000 treasury shares from the market. In addition, in 2018, UMB issued 5,000, $1,000 face value, 10% 10-year convertible bonds at par value. Each bond is convertible into 100 shares of common stock. The par value...

L Company had 500,000 shares of common stock outstanding on January 1, 2021. During 2021, it...

L Company had 500,000 shares of common stock outstanding on January 1, 2021. During 2021, it had the following transactions that affected the common stock account: February 1st – issued 90,000 shares March 1st – issued a 10% stock dividend June 1st – issued a 2-for-1 stock split Required: Determine the weighted-average number of shares outstanding as of December 31, 2021 (round to whole numbers). Assume that L Company had net income of $2,500,000 during 2021. In addition, it had...

On January 1, 2016, Alpha Corporation had 300,000 shares of common stock outstanding with a par...

On January 1, 2016, Alpha Corporation had 300,000 shares of common stock outstanding with a par value of $3 per share. On March 31, Alpha Corporation declared a 10% stock dividend when the market value was $8 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."

On January 1, 2020, ABC Corporation had 990,000 shares of common stock outstanding. On March 1,...

On January 1, 2020, ABC Corporation had 990,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On May 1, the company issued a 5% stock dividend. On July 1, the corporation declared and issued a 3-for-1 stock split. On October 1, the corporation repurchased on the market 400,000 of its own outstanding shares and retired them. Instructions Compute the weighted average number of shares to be used in computing earnings...

On January 1, 2017, Ivanhoe Ltd. had 500,000 common shares outstanding. During 2017, it had the...

On January 1, 2017, Ivanhoe Ltd. had 500,000 common shares outstanding. During 2017, it had the following transactions that affected the common share account: Feb. 1 Issued 157,000 shares. Mar. 1 Issued a 19% stock dividend. May 1 Acquired 168,000 common shares and retired them. June 1 Issued a 2-for-1 stock split. Oct. 1 Issued 71,000 shares. The company’s year end is December 31. Determine the weighted average number of shares outstanding as at December 31, 2017. Assume that Ivanhoe...

On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding....

On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred stock were outstanding. These were issued at a price of $75 per share. During the year, the following stock transactions occurred: 1. March 3: Lorain reacquired 100 shares of its own common stock at a cost of $24 per share. 2. April 27: It...

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On...

On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On March 17 the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 per share on March 17. The entry to record the transaction of March 17 would include a Group of answer choices debit to Common Stock Dividends Distributable for $120,000. credit to Stock Dividends for $36,000. credit to Cash for $156,000. credit...

On January 1, 2021, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions...

On January 1, 2021, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2021: March 1: Reacquired 2,300 shares, accounted for as treasury stock. September 30: Sold all the treasury shares. December 1: Sold 11,300 new shares for cash. December 31: Reported a net income of $191,500. The following transactions occurred during 2022: January 10: Declared and issued a 30% stock dividend. December 31: Reported a net income of $261,800. Required: Calculate Shamu's basic earnings...

On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding....

On January 1, 2027, Ajax Corporation had 10 million shares of common stock, issued and outstanding. On October 1, 2027 Ajax issued an additional 1 million shares of common stock. Ajax also has $40 million face value, 6.25% convertible bonds outstanding for the entire year. The bonds are convertible into 2 million common shares. Ajax has a tax rate of 40% and net income of $14 million in 2027. What is Ajax’s diluted earnings per share for 2027? $1.35 $1.27...

Subjects