Transactions involving the common stock account of Higrade Gas Company during the 2-year period 2011 to 2012
Question:
Transactions involving the common stock account of Higrade Gas Company during the 2-year period 2011 to 2012 were as follows:
2011
Jan. 1 Had a balance of 200,000 shares of $10 par common stock.
Apr. 1 Converted $2,500,000 of convertible bonds with 50 shares issued for each $1,000 bond.
July 1 Declared a 10% stock dividend.
Oct. 1 Employees exercised options to purchase 7,000 shares for $20 a share.
2012
Apr. 1 Declared a 2-for-1 stock split.
Oct. 1 Sold 170,000 shares for $30 a share.
From the information given, compute the comparative number of weighted-average shares outstanding for 2011 and 2012 to be used for basic EPS computations at the end of 2012.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Weightedaverage number of shares outstanding 2011 Ja...View the full answer
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
