In: Accounting
On January 1, 2018, Waterway Industries had 394000 shares of its
$2 par value common stock outstanding. On March 1, Waterway sold an
additional 759000 shares on the open market at $20 per share.
Waterway issued a 20% stock dividend on May 1. On August 1,
Waterway purchased 415000 shares and immediately retired the stock.
On November 1, 610000 shares were sold for $25 per share. What is
the weighted-average number of shares outstanding for 2018?
(Rounded to the nearest dollar.)
Statement Showing waterways's weighted Average No. of Share balance at end of 31/Dec/2018 | ||||||
Transaction | No. of Shares | Cummulative Stock Balance | Start Date | No. of Days in Year | Weighted no. of share | Remark |
Opening Balance | 394,000 | 394,000 | 01/01/2018 | 59 | 63,688 | 394000*59/365 |
Issued additional Share | 759,000 | 1,153,000 | 01/03/2018 | 61 | 192,693 | 1153000*61/365 |
Issued 20% Stock dividend (1153000*20%) | 230,600 | 1,383,600 | 01/05/2018 | 92 | 348,743 | 1383600*92/365 |
Purchase & Retired Stock | (415,000) | 968,600 | 01/08/2018 | 92 | 244,140 | 968600*92/365 |
Issued share | 610,000 | 1,578,600 | 01/11/2018 | 61 | 263,821 | 1578600*61/365 |
Total Weighted Average Outstanding Share | 365 | 1,113,085 |