Gradebook ORION Downloadable eTextbook blATt ACOOUNT?NG (ACCT 201-202) RESOURCES
ID: 2429970 • Letter: G
Question
Gradebook ORION Downloadable eTextbook blATt ACOOUNT?NG (ACCT 201-202) RESOURCES omework Exercise 16-15 Crane Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time has Crane issued any potentially dilutive securities. Listed below is a summary of Crane's common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2. -Shares issued as a result of a 10% stock dividend on September 30, 2016 3. Shares issued for cash on March 31, 2017 2,140,000 214,000 2,160,000 4,514,000 Number of common shares issued and outstanding at December 31, 2017 A 2-for-1 stock split of Crane's common stock took place on March 31, 2018 -15 Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement shares Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income s tatement shares Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement shares 424 Al Rights Reserved. A DiViSion of John oley&.Sans nsExplanation / Answer
1) Calculation of Weighted Average Shares for 2016 on 2017 balance sheet
2) Calculation of Weighted Average Shares for 2017 on 2017 balance sheet
3) Calculation of Weighted Average Shares for 2017 on 2018 balance sheet
4) Calculation of Weighted Average Shares for 2018 on 2018 balance sheet
a) Jan 1, 2016 - Sept 30, 2016 (2,140,000*9/12) 1,605,000 b) Adjustment for stock dividends 10% 1.10 c) Jan 1, 2016 - Sept 30, 2016 as adjusted (1,605,000*1.10) 1,765,500 d) Oct 1, 2016 - Dec 31, 2016 [(2,140,000+214,000)*3/12] 588,500 Weighted Average Common Shares (c+d) 2,354,000Related Questions
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