Weighted Average Shares-At the beginning of the current year, Hardin Company had
ID: 2584245 • Letter: W
Question
Weighted Average Shares-At the beginning of the current year, Hardin Company had 20,000 shares of $10 per common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year end it had 63,800 shares outstanding: April 1 Issued 5,000 shares of stock. June 1, Issued 4,000 shares of stock July 1, Issued a 10% stock dividend Sept 30, Issued a 2-for-1 stock split, reducing the par value to $5 per share. Oct. 1 Reacquired 1,000 shares as treasury stock Nov 30, Reissued the 1,000 shares of treasury stock. REQUIRED: Determine the weighted average number of shares outstanding for computing the current earnings per share
Explanation / Answer
Particulars
Months
Price per share
No. of shares
Weighted average no. of shares
Opening Stock
12
10
20000
20,000
Issued on April 1
12
10
5000
5,000
Issued on June 1
10
10
4000
3,333
29000
10% Stock dividend July 1
9
10
2900
2,175
31900
30,508
Stock Split
5
63800
61,017
Reacquired on Oct 1
3
5
-1000
(250)
Reissued Nov 30
1
5
1000
83
Closing Stock
63800
60,850
Particulars
Months
Price per share
No. of shares
Weighted average no. of shares
Opening Stock
12
10
20000
20,000
Issued on April 1
12
10
5000
5,000
Issued on June 1
10
10
4000
3,333
29000
10% Stock dividend July 1
9
10
2900
2,175
31900
30,508
Stock Split
5
63800
61,017
Reacquired on Oct 1
3
5
-1000
(250)
Reissued Nov 30
1
5
1000
83
Closing Stock
63800
60,850
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