Question

On January 1, 2021, Flint Corp. had 459,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 123,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 101,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 57,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding

Answer 1

Answer:

The weighted-average number of shares outstanding = 1,699,025

Explanation:

January 1, 459,000 common stocks x 1.1 (stock dividend) x 3 (stock split) = 1,514,700 stocks

February 1, issued 123,000 common stocks = 123,000 x 1.1 (dividend) x 3 (split) x 11/12 (time) = 372,075 stocks

May 1 acquired 101,000 treasury stocks = -101,000 x 8/12 (time) x 3 (split) = -202,000 stocks

October 1, reissued 57,000 treasury stocks = 57,000 x 3/12 (time) = 14,250 stocks

The weighted-average number of shares outstanding = 1,514,700 + 372,075 -202,000 + 14,250 = 1,699,025 stocks