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On January 1, 2012, Chang Corp. had 528,000 shares of common stock outstanding.

ID: 2368127 • Letter: O

Question

On January 1, 2012, Chang Corp. had 528,000 shares of common stock outstanding. During 2012, it had the following transactions that affected the Common Stock account.

February 1 Issued 121,000 shares

March 1 Issued a 20% stock dividend

May 1 Acquired 112,000 shares of treasury stock

June 1 Issued a 3-for-1 stock split

October 1 Reissued 70,100 shares of treasury stock

(a) Determine the weighted-average number of shares outstanding as of December 31, 2012. The weighted-average number of shares outstanding

Explanation / Answer

Hi, I am giving it a last try. My approach is correct. I don't know why the answer is not coming. Date Change in Shares Shares O/s- Fraction of Year Dividend 3/1 Split Weighted Average Shares Jan-01 528000 0.083333333 120% 3 158400 Feb-01 121000 649000 0.083333333 120% 3 194700 Mar-01 129800 778800 0.17 3 389400 May-01 -100000 678800 0.08 3 169700 Jun-01 3/1 Split 2036400 0.33 678800 Oct-01 70100 2106500 0.25 526625 2117625 Total Weighted Number of shares O/S- are 2117625 Thanks.

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