The following information is available for Barone Corporation: January 1, 2018 Shares...

Question:

The following information is available for Barone Corporation:

January 1, 2018 Shares outstanding 4,000,000
April 1, 2018 Shares issued 640,000
July 1, 2018 Treasury shares purchased 240,000
October 1, 2018 Shares issued in a 100% stock dividend 4,400,000

The number of shares to be used in computing earnings per common share for 2018 is?

Earning Per Share:

The earning per share is the indicator of the performance of the company. The investor of the company always sees the earning per share to invest their funds into the company's shares. It is because the investors want to invest in such a company that has good earning per share as it is the return on their investment.

Answer and Explanation:

Date Particular Total Share (a) Weighted (b) Weighted Share (a x b)
January 1, 2018 Shares outstanding 4,000,000 (12/12) 4,000,000
April 1, 2018 Shares issued 640,000 (9/12) 480,000
July 1, 2018 Treasury shares purchased 240,000 (6/12) 120,000
October 1, 2018 Shares issued in a 100% stock dividend 4,400,000 (3/12) 1,100,000
Total Weighted Share used to calculate earning per share 5,460,000

The number of shares to be used in computing earnings per common share for 2018 is $5,460,000


Learn more about this topic:

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Calculating Earnings Per Share for Post-Retirement Benefits

from Accounting 202: Intermediate Accounting II

Chapter 9 / Lesson 4
295

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