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3 years ago

Vaughn Corporation had 303,000 shares of common stock outstanding on January 1, 2017. On May 1, Vaughn issued 31,200 shares.

Business

1 answer:

Helga [31]3 years ago

4 0

Answer and Explanation:

The computation of the weighted-average number of shares outstanding in each cases is as follows:

a. At the time when the shares are issued at cash

= (303,000 × 12 ÷ 12) + (31,200 × 8 ÷ 12)

= 303,000 + 20,800

= 323,800 shares

b. At the time when the shares are issued in the stock dividend

= (303,000 × 12 ÷ 12) + (29,700 × 12 ÷ 12)

= 303,000 + 29,700

= 332,700 shares

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Solution

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