Weighted Average SharesAt the beginning of 2019, H Company had 300,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:March1Issued 43,000 shares of stock at $24 per share.June1Issued a 15% stock dividend.July1Issued 14,000 shares of stock at $29 per share.Aug.31Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.Oct.31Reacquired 93,000 shares as treasury stock at a cost of $32 per share.Nov.30Reissued 57,000 treasury shares at a price of $35 per share.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. 2. Determine the number of common shares outstanding at December 31, 2019.

Shares outstanding refer to the shares issued by the company and owned by the firm’s shareholders.…

Answered: At the beginning of 2019, H Company had…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16P: Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018,...

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Weighted Average Shares

At the beginning of 2019, H Company had 300,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:

March	1	Issued 43,000 shares of stock at $24 per share.
June	1	Issued a 15% stock dividend.
July	1	Issued 14,000 shares of stock at $29 per share.
Aug.	31	Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share.
Oct.	31	Reacquired 93,000 shares as treasury stock at a cost of $32 per share.
Nov.	30	Reissued 57,000 treasury shares at a price of $35 per share.

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.

2. Determine the number of common shares outstanding at December 31, 2019.

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