Question

Pronghorn Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time has Pronghorn issued any potentially dilutive securities. Listed below is a summary of Pronghorn'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 common shares issued and outstanding at December 31, 2020 A 2-for-1 stock split of Pronghorn's common stock took place on March 31, 2021 2,140,000 214,000 2,160,000 4,514,000 4 Your answer is correct. Compute the weighted average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. 2354000 shares LINK TO TEXT x Your answer is incorrect. Try again. Compute the weighted average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement. 3385500 shares

Answer 1

(b)  

Jan 1 2020 - Mar 31 2020(2,140,000+214,000=2,354,000*3/12)	588500
Apr 1 2020-Dec 31 2020(4,514,000*9/12)	3,385,500
Weighted average number of common shares for 2020	3,974,000

(c)

Weighted average no. of shares for 2020(computed in (a) )	3,974,000
Retrospective adjustment for stock split	2
Weighted avg no of common shares to be used in cal of EPS for 2020 on 2021 comparative income statement	7,948,000

(d)

No of shares at beginning of 2021	4,514,000
Retrospective adjustment for stock split	2
Weighted average no of shares to be used in cal of EPS for 2021 on 2021 comparative income statement	9,028,000