Mathematics, 13.02.2021 20:10 jazzy4211
E16.15 Keynote Inc. uses a calendar year for financial reporting. The company is authorized to issue 20,000,000 shares of $1 par common stock. At no time has Keynote issued any potentially dilutive securities. Listed below is a summary of Keynote’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2018 5,000,000
2. Shares issued for cash on March 31, 2019 1,000,000
3. A 2-for-1 stock split of Keynote’s common stock took place on August 31, 2020.
4. Shares issued as a result of a 30% stock dividend on June 30, 2021 3,600,000
Instructions
(a) Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
(b) Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement.
(c) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement.
(d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2021 on the 2021 comparative income statement. (CMA adapted)
Answers: 3
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E16.15 Keynote Inc. uses a calendar year for financial reporting. The company is authorized to issue...
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