|
|
a.
Jan. 1, 2019–Sept. 30, 2019 (1,900,000 X 9/12) |
1,425,000 |
X Retrospective adjustment for stock dividend |
X 1.1 |
Jan. 1, 2019–Sept. 30, 2019 as adjusted |
1,567,500 |
Oct. 1, 2019–Dec. 31, 2019 (2090,000 * 3/12) |
522,500 |
weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. |
2,090,000 |
Another way to view this transaction is that the 1,900,000 shares at the beginning of the year must be restated for the stock dividend regardless of where in the year the stock dividend occurs.
b.
Jan. 1, 2020–Mar. 31, 2020 (2,090,000 X 3/12) |
522,500 |
Apr. 1, 2020–Dec. 31, 2020 (4,220,000 X 9/12) |
3,165,000 |
weighted-average number of common shares for 2020 |
3,687,500 |
c.
2020 weighted average number of shares previously |
3,687,500 |
Retrospective adjustment for stock split |
2 |
weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement. |
7,375,000 |
d.
Jan. 1, 2021–Mar. 31, 2021 (4,220,000 X 3/12) |
1,055,000 |
Retrospective adjustment for stock split |
X 2 |
Jan. 1, 2020–Mar. 31, 2020, as adjusted |
2,110,000 |
Apr. 1, 2020–Dec. 31, 2020 (8,440,000 X 9/12) |
6,330,000 |
weighted-average number of common shares for 2021 on the 2021 comparative income statement. |
8,440,000 |
Riverbed Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,480,000...
Exercise 16-15 Waterway Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,480,000 shares of $10 par common stock. At no time has Waterway issued any potentially dilutive securities. Listed below is a summary of Waterway’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 1,900,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 190,000 3. Shares issued for cash on March...
Sage Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,480,000 shares of $ 10 par common stock. At no time has Sage issued any potentially dilutive securities. Listed below is a summary of Sage’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 1,900,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2016 190,000 3. Shares issued for cash on March 31, 2017 2,130,000...
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Nash Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,810,000 shares of $12 par common stock. At no time has Nash issued any potentially dilutive securities. Listed below is a summary of Nash’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 1,850,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 222,000 3. Shares issued for cash on March 31, 2020...
Stellar Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,490,000 shares of $10 par common stock. At no time has Stellar issued any potentially dilutive securities. Listed below is a summary of Stellar’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,170,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 217,000 3. Shares issued for cash on March 31, 2020...
Sweet Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,770,000 shares of $10 par common stock. At no time has Sweet issued any potentially dilutive securities. Listed below is a summary of Sweet's common stock activities. 1. 2. 3. Number of common shares issued and outstanding at December 31, 2018 Shares issued as a result of a 10% stock dividend on September 30, 2019 Shares issued for cash on March 31, 2020 Number of...
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Kingbird Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,210,000 shares of $12 par common stock. At no time has Kingbird issued any potentially dilutive securities. Listed below is a summary of Kingbird’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,040,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 244,800 3. Shares issued for cash on March 31, 2020...
Culver Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,790,000 shares of $10 par common stock. At no time has Culver issued any potentially dilutive securities. Listed below is a summary of Culver’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,200,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 220,000 3. Shares issued for cash on March 31, 2020...