Question

uy LJ, 2021, IURIP leves the company. Prepare the journal entry (If any) U delu TOI J 10 10 TL04) EXCEL (Weighted Average Number of Shares) Newton Inc, uses a calendar year for financial reporting the company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton issued any potentially securities. Listed below is a summary of Newton's common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2,000,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2016 200,000 3. Shares issued for cash on March 31, 2017 2,000,000 Number of common shares issued and outstanding at December 31, 2017 4.200.000 4. A2-for-1 stock split of Newton's common stock took place on March 31, 2018 Instructions (a) Compute the weighted average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement. (b) Compute the weighted average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement (c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement. (d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement

Answer 1

Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. Jan 1, 2013-Sept. 30, 2013 2,000,000 /12.9 = Adjustment for stock dividend 10% Jan 1, 2013-Sept. 30, 2013 as adjusted 1,500,000 + 10% = Oct. 1, 2013 - Dec 31, 2013 2,200,000 /12 x 3 = 1,500,000 1.10 1,650,000 550,000 2,200,000 Om in cao Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement. Jan.1, 2014 - Mar. 31, 2014 2,000,000 /12 x 3 = Apr. 1, 2014 - Dec 31, 2014 4,200,000 /12 x 9 = 550,000 3,150,000 3,700,000 Outstanding shares Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement. 3,700,000 2014 weighted average number of shares previously computed Adjustment for stock split 2 for 1 Outstanding Shares 7.400.000 Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement. N OOM 1,050,000 Jan. 1, 2015 - Mar. 31, 2015 4,200,000 / 12 x 3 = Adjustment for stock split 2 for 1 Jan. 1, 2015 - Mar. 31, 2015 adjusted 1,050,000 x 2 = Apr. 1, 2015 - Dec 31, 2015 8,400,000 / 12 x 3 = 2,100,000 6,300,000