ACC-302-Ch-19-solutions-practice

ACC-302-Ch-19-solutions-practice - EXERCISES 1920....

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EXERCISES 19–20. Increase/Decrease in No. of Shares Jan. 1 to Feb. 1 44,000 × 1/12 × 3* × 1.25 = 13,750 (44,000 + 56,000) Feb. 1 to May 1 100,000 × 3/12 × 3 × 1.25 = 93,750 (100,000 – 25,000) May 1 to Aug. 1 75,000 × 3/12 × 3 × 1.25 = 70,313 (75,000 × 1.25) Aug. 1 to Sept. 1 93,750 × 1/12 × 3 = 23,437 (93,750 + 10,000) Sept. 1 to Nov. 1 103,750 × 2/12 × 3 = 51,875 (103,750 × 3) Nov. 1 to Dec. 31 311,250 × 2/12 = 51,875 Weighted-average number of shares outstanding. ......................................................... 305,000 *3-for-1 stock split 25% stock dividend 19–21. Weighted-average number of shares outstanding, 2005: Jan. 1 to April 1—200,000 × 1.1 × 2.0 × 3/12. ............................ ........................................................................................... 110,000 April 1 to Oct. 1—200,000 + (50 × 2,500) = 325,000; 325,000 × 1.1 × 2.0 × 6/12. .......................................................... ........................................................................................... 357,500 Oct. 1 to Dec. 31—325,000 × 1.1 = 357,500; 357,500 + 7,000 = 364,500; 364,500 × 2.0 × 3/12. ....................... ........................................................................................... 182,250 Weighted-average number of common shares. .......................... ........................................................................................... 649,750 Weighted-average number of shares outstanding, 2006: Jan. 1 to Oct. 1—364,500 × 2.0 = 729,000; 729,000 × 9/12. ........ ........................................................................................... 546,750 Oct. 1 to Dec. 31—(729,000 + 170,000) × 3/12. ............................ ........................................................................................... 224,750 Weighted-average number of common shares. .......................... ........................................................................................... 771,500 19–22. Computation of shares outstanding (working backward): Oct. 1 to Dec. 31. ......................................................... 682,500* July 1 to Oct. 1. ........................................................... 650,000 May 1 to July 1. ........................................................... 615,000 April 1 to May 1. .......................................................... 205,000 § Feb. 1 to April 1. .......................................................... 210,000 #
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Jan. 1 to Feb. 1. ........................................................... 180,000** COMPUTATIONS: * Total dividends divided by dividend per share at Dec. 31
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ACC-302-Ch-19-solutions-practice - EXERCISES 1920....

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