Question

On January 1, 2021, Windsor Corp. had 461,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 March 1 May 1 June 1 October 1 Issued 124,000 shares Issued a 10% stock dividend Acquired 104,000 shares of treasury stock Issued a 3-for-1 stock split Reissued 61,000 shares of treasury stock (a) X Your answer is incorrect. Determine the weighted average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding 1386775

Answer 1

Inser ГА Con = 14 feb 4 - Microsoft Excel Home Insert Page Layout Formulas Data Review View * Cut Calibri - 11 - A A = = = Wrap Text General La Copy Paste aste Format Painter BI U A E E F Merge & Center - 99 % 8 ... Conditional Format Cell Formatting as Table Styles Clipboard Font Alignment 0 Number Styles E12 B 1 Calculation of weighted average no. of share outstanding at the end of 31 December 2021 2 Date No. of share issued No. of cumulative share ou Portion of the year outstanding weighted share 3 january 1,2021 461000 4,61,000 1/12 38,417 4 February 1,202 124000 5,85,000 1/12 48,750 5 March 1,2021 0 5,85,000 2/12 97,500 6 May 1,2021 104000 6,89,000 1/12 57,417 7 June 1,2021 1378000 20,67,000 4/12 6,89,000 8 (3 for 1 stock split) 9 (461000+124000+104000)*2 10 October 1,2021 61000 21,28,000 3/12 5,32,000 11 Total weighted average share 14,63,083 Ans 12

Con = Page Layout Formulas Data Review View = = = Home Insert Cut Ea Copy Format Painter Clipboard Calibri - 11 - A A BI U DA Font *Wrap Text 1 Merge & Center Paste Alignment А 24 15 Computation of EPS 16 17 calculation total no. of equity share outstanding 18 No. of share 19 As on 1/1 8,16,000 20 issued as on 5/1 3,18,000 21 Aquired treasury stock as or 1,62,000 22 2 for 1 stock split 23 (816000+318000+162000)* 25,92,000 total no. of equity stock 25,92,000 25 26 27 Amount in $ 28 Net income 25,50,000 29 Share of profit for prefered stock 30 8%*(5100000) 4,08,000 profit after preference share 21,42,000 32 total no. of equity stock 25,92,000 33 EPS 0.83 Ans 34 (2142000/2592000) 35 36 Sheet1 Sheet2 Sheet3 Ready