Workshop2_Ch16_keys.pdf - ACCT325Workshop2Ch....

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ACCT325 Workshop 2‐Ch.16 Weighted‐Average Number of Share
Total Points: 20
Due Date: Tuesday, February 6, 2018 (At the beginning of class)
Name:_______________________________
Assuming XYZ uses a calendar year for financial reporting. The company is authorized to issue
37,500,000 shares of $1 par common stock. Listed below is a summary of XYZ’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2014 3,000,000
2. Shares issued as a result of a 40% stock dividend on August 1, 2015 1,200,000
3. Shares issued for cash on May 31, 2016 1,875,000
Number of common shares issued and outstanding at December 31, 2016 6,075,000
4. A 3‐for‐1 stock split of XYZ’s common stock took place on July 31, 2017
Instructions:
(a) Compute the weighted average number of common shares used in computing earnings per
common share for 2015 on the 2016 comparative income statement.