Very Large Inc. had the following stock transactions during the year: 1/1 Balanc
ID: 2597645 • Letter: V
Question
Very Large Inc. had the following stock transactions during the year:
1/1 Balance- 100,000 shares
3/1 issued 10,000 shares
5/15 declared a 10% stock dividend
12/1 purchased 1,000 shares for the treasury
Determine the weighted-average number of shares to compute earnings per share.
Please show work
Can you also answer this simple question if you dont mind
In 2008, prior to closing their books, Free Company determines that they failed to accrue interest expense of $17,000, at the end of 2007. The interest was paid during 2008 prior to discovering the error. Make the necessary journal entry to correct this error when found.
ANSWER BOTH QUESTIONS
Explanation / Answer
ans) Calculation of weighted average number of shares
Date Shares outstanding Weights Weighted Average
1/1 100,000 2/12= 0.167 16700
3/1 110,000 2.5 /12 =0.208 22880
5/15 121000 6.5/12= 0.542 65582
(110,000 X 10% + 110,000)
12/1 120,000 1/12 = 0.083 9960
Weighted Average number of shares 115122
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