ACC - E16-15 (Weighted-Average Number of Shares) Newton Inc.

E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial
9,000,000
$10
shares of
reporting. The company is authorized to issue
par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a
summary of Newtons common stock activities.
1. Number of common shares issued and outstanding at December 31, 2012
2,000,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2013
200,000
3. Shares issued for cash on March 31, 2014
2,000,000
Number of common shares issued and outstanding at December 31, 2014
4,200,000
4. A 2-for-1 stock split of Gogeans common stock took place on March 31, 2015
Instructions:
(a) Compute the weighted average number of common shares used in computing earnings per
common share for 2013 on the 2014 comparative income statement.
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Shares outstanding

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Percentage
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(b) Compute the weighted average number of common shares used in computing earnings per
common share for 2014 on the 2014 comparative income statement.
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Shares outstanding

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(c) Compute the weighted average number of common shares to be used in computing earnings per
common share for 2014 on the 2015 comparative income statement.
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Shares outstanding

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Number
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(d) Compute the weighted average number of common shares to be used in computing earnings per
common share for 2015 on the 2015 comparative income statement.
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Shares outstanding