Weighted Average Shares At the beginning of 2014, Hardin Company had 330,000 sha
ID: 2578140 • Letter: W
Question
Weighted Average Shares
At the beginning of 2014, Hardin Company had 330,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:
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.
shares
2. Determine the number of common shares outstanding at December 31, 2014.
shares
Explanation / Answer
1)
Date
Particulars
Calculation
No. of shares
2014
Common stock outstanding at the beginning of year
330000
March 1
Issued 43,000 shares of stock at $24 per share.
43000*(10/12 )
35834
June 1
Issued a 10% stock dividend.
(330000+43000)*10%*7/12
21759
July 1
Issued 11,000 shares of stock at $29 per share.
11000*(6/12 )
5500
Aug 31
Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.
(330000+43000+37300+11000)*1*4/12
140434
Oct 31
Reacquired 99,000 shares as treasury stock at a cost of $32 per share.
-99000*2/12
-16500
Nov 30
Reissued 52,000 treasury shares at a price of $35 per share.
52000*1/12
4334
TOTAL
521361
The weighted average number of shares outstanding = 661794
2)
Date
Particulars
Calculation
No. of shares
2014
Common stock outstanding at the beginning of year
330000
March 1
Issued 43,000 shares of stock at $24 per share.
43000
June 1
Issued a 10% stock dividend.
(330000+43000)*10%
37300
July 1
Issued 11,000 shares of stock at $29 per share.
11000
Aug 31
Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.
(330000+43000+37300+11000)*1
421300
Oct 31
Reacquired 99,000 shares as treasury stock at a cost of $32 per share.
-99000
Nov 30
Reissued 52,000 treasury shares at a price of $35 per share.
52000
TOTAL
795600
Number of common shares outstanding at December 31, 2014 = 795600
Date
Particulars
Calculation
No. of shares
2014
Common stock outstanding at the beginning of year
330000
March 1
Issued 43,000 shares of stock at $24 per share.
43000*(10/12 )
35834
June 1
Issued a 10% stock dividend.
(330000+43000)*10%*7/12
21759
July 1
Issued 11,000 shares of stock at $29 per share.
11000*(6/12 )
5500
Aug 31
Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.
(330000+43000+37300+11000)*1*4/12
140434
Oct 31
Reacquired 99,000 shares as treasury stock at a cost of $32 per share.
-99000*2/12
-16500
Nov 30
Reissued 52,000 treasury shares at a price of $35 per share.
52000*1/12
4334
TOTAL
521361
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