At the beginning of 2014, Hardin Company had 220,000 shares of $10 par common stock outstanding....

80.2K

Verified Solution

Question

Accounting

At the beginning of 2014, Hardin Company had 220,000 shares of$10 par common stock outstanding. During the year, it engaged inthe following transactions related to its common stock:
March 1 Issued 43,000 shares of stock at $20 per share.
June 1 Issued a 10% stock dividend.
July 1 Issued 16,000 shares of stock at $25 per share.
Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducingthe par value to $5 per share.
Oct. 31 Reacquired 88,000 shares as treasury stock at a cost of $28 pershare.
Nov. 30 Reissued 54,000 treasury shares at a price of $31 pershare.
Required:
1. Determine the weighted average number of shares outstandingfor computing the current earnings per share. Round your interimcomputations and final answer for the number of shares to nearestwhole number.
_ shares

2. Determine the number of common shares outstanding at December31, 2014.
_ shares

Answer & Explanation Solved by verified expert

3.7 Ratings (480 Votes)

Solution Since there was a 2 for 1 split in September you have to calculate an as if the split occurred at the beginning of the year Also your results will depend on whether you use a 360 day 12 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

March	1	Issued 43,000 shares of stock at $20 per share.
June	1	Issued a 10% stock dividend.
July	1	Issued 16,000 shares of stock at $25 per share.
Aug.	31	Issued a 2-for-1 stock split on outstanding shares, reducingthe par value to $5 per share.
Oct.	31	Reacquired 88,000 shares as treasury stock at a cost of $28 pershare.
Nov.	30	Reissued 54,000 treasury shares at a price of $31 pershare.