Computing Weighted-Average Common Shares Knight Company, a calendar-year firm with 100,000 shares of common stock outstanding at the start of the year, declares a three-for-one stock split halfway through the year. The next day, Knight issues 200,000 new shares in conjunction with the acquisition of a new plant. What is the number of shares that should be used in computing basic earnings per share for the year? Inclusive Dates January - June July-December Actual Weighted Avg. Shares Outstanding or Stock Split Outstanding Outstanding Outstanding 100,000 ✓ 0 x 300,000 x 0 ✓ Retroactive Restatement for Stock Dividend Shares Equivalent Shares 0x 0 x The number of shares for the basic EPS calculation is 0 Months x 0 x 0 x 0 x 0 x 0 x

Computing Weighted-Average Common Shares Knight Company, a calendar-year firm with 100,000 shares of common stock outstanding at the start of the year, declares a three-for-one stock split halfway through the year. The next day, Knight issues 200,000 new shares in conjunction with the acquisition of a new plant. What is the number of shares that should be used in computing basic earnings per share for the year? Inclusive Dates January - June July-December Actual Weighted Avg. Shares Outstanding or Stock Split Outstanding Outstanding Outstanding 100,000 ✓ 0 x 300,000 x 0 ✓ Retroactive Restatement for Stock Dividend Shares Equivalent Shares 0x 0 x The number of shares for the basic EPS calculation is 0 Months x 0 x 0 x 0 x 0 x 0 x

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...

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