Question

Weighted Average Shares At the beginning of 2014, Hardin Company had 220,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: Mar. Issued 45,000 shares of stock at $22 per share. June 1 Issued a 15% stock dividend. July 1 Issued 10,000 shares of stock at $27 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 95,000 shares as treasury stock at a cost of $30 per share Nov. 30 Reissued 45,000 treasury shares at a price of $33 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. X shares 2. Determine the number of common shares outstanding at December 31, 2014. 579,500shares

Answer 1

Solution:
1.)

Date	Particulars	Number of Shares	Time	Weighted Shares	No of Shares on basis of stock split
1/1/2011	Opening Shares	220,000	2	440,000	880,000
1/3/2011	Issued	265,000	3	795,000	1,590,000
1/6/2011	Stock Dividend (15% of $265,000)	304,750	1	304,750	609,500
1/7/2011	Issued 10,000 Shares	314,750	2	629,500	1,259,000
31/8/2011	Stock Split	629,500	2	1,259,000	1,259,000
31/10/2011	Required 95,000 Shares	534,500	1	534,500	534,500
30/11/2011	Reissued 45,000 Shares	579,500	1	579,500	579,500
			12	4,542,250	6,711,500

Weighted Average shares = 6,711,500/12 =559,291.67
Stock at 31/12 are 579,500