Question

In: Accounting

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

Solutions

Expert Solution

Increase / Decrease

Shares Outstanding

Months outstanding

Share months

Jan-01

                                       -

                          1,000,000

2

1,000,000*2/1*2 = 4,000,000

Mar-01

                         160,000

                      1,160,000

4

1,160,000*2/1*4 = 9,280,000

Jul-01

                     1,160,000

                      2,320,000

3

2,320,000*3 = 6,960,000

Oct-01

                           (520,000)

                      1,800,000

3

1,800,000*3 = 5,400,000

12

25,640,000

Weighted average number of shares = 25,640,000 / 12 = 2,136,667 (app.)

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

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.
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...
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, 2020, a company had 700,000 shares of common stock outstanding. On March 1,...
On January 1, 2020, a company had 700,000 shares of common stock outstanding. On March 1, it issued a 3-for-1 stock split. On July 1 it Issued 50,000 shares. On September 1 it Issued a 20% stock dividend. Determine the weighted-average number of shares outstanding as of December 31, 2020.
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 114,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 60,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2018.
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 114,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 60,000 shares of treasury stock a. Determine the weighted-average number of shares outstanding as of December 31, 2018. b. Assume that Coronado Corp. earned...
) On January 1, 2018, Swifty Corp. had 463,000 shares of common stock outstanding. During 2018,...
) On January 1, 2018, Swifty Corp. had 463,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 118,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 63,000 shares of treasury stock Collapse question part (a) Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average...
On January 1, 2018, Ivanhoe Corp. had 482,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Ivanhoe Corp. had 482,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 126,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 104,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 shares of treasury stock Part 1 Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average number of shares...
On January 1, 2018, Oriole Corp. had 459,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Oriole Corp. had 459,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 126,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 101,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 62,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average number of shares outstanding Assume...
On January 1, 2018, R Corp. had 480000 shares of common stock outstanding. During 2018, the...
On January 1, 2018, R Corp. had 480000 shares of common stock outstanding. During 2018, the following transactions affected the common stock account: 2/1/208 issued 120000 shares. 5/1/208 acquired 100000 shares of treasury stock. 6/1/2018 issued a 3-for-1 stock split. 10/1/2018 reissued 60000 shares of treasury stock ( not adjusted for dividend or split). a) Determine the weighted-average number of shares outstanding as of December 31, 2018. b) Assume that Wilke Corp. earned net income of $3456000 during 2018, determine...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT