Kolanso Inc. had 870,000 common shares outstanding on 1 January 20X8. On 1 June, the company entered

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Kolanso Inc. had 870,000 common shares outstanding on 1 January 20X8. On 1 June, the company entered into an agreement to purchase the shares of Leroy Co. As part of this acquisition transaction, Kolanso agreed to issue 100,000 new common shares to the previous shareholders of Leroy if the company had total sales of $7.8 million for the first year. The goal was met by 31 December 20X8 and the shares were issued on 1 February 20X9. Also during the year, the company repurchased 30,000 shares on 1 December.


Required:
Calculate the company’s weighted average number of shares outstanding for the basic EPS calculation for the year ended 31 December 20X8.

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Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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