Exercise 16-15 2,140,000 214,000 1,820,000 4,174,000 LINK TO TEXT LINK TO TEXT L
ID: 2508857 • Letter: E
Question
Exercise 16-15
2,140,000
214,000
1,820,000
4,174,000
LINK TO TEXT
LINK TO TEXT
LINK TO TEXT
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement.
Exercise 16-15
Carla Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,680,000 shares of $10 par common stock. At no time has Carla issued any potentially dilutive securities. Listed below is a summary of Carla’s common stock activities.1. Number of common shares issued and outstanding at December 31, 2015
2,140,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2016214,000
3. Shares issued for cash on March 31, 20171,820,000
Number of common shares issued and outstanding at December 31, 20174,174,000
4. A 2-for-1 stock split of Carla’s common stock took place on March 31, 2018 Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement.shares
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Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement.shares
LINK TO TEXT
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement.shares
LINK TO TEXT
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement.
Explanation / Answer
Outstanding as on 31/12/2015 Outstanding as on 31/12/2016 Outstanding as on 31/12/2017 Outstanding as on 31/12/2018 Number of common shares issued and outstanding at December 31, 2015 2,140,000 2,140,000 2,140,000 2,140,000 Add Stock dividend on 30/9/2016 214,000 214,000 214,000 Shares issued for cash on March 31, 2017 1,820,000 2,140,000 2,354,000 4,174,000 2,354,000 A 2-for-1 stock split of Newton’s common stock took place on March 31, 2018 4708000 The weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement. 2,354,000 4,174,000
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