Question

1) Blossom Corporation had 656,400 common shares outstanding on January 1, 2020. On March 1, 2020, Blossom issued 159,000 shares. On September 1, Blossom repurchased and cancelled 64,200 shares.

Calculate Blossom’s weighted average number of shares outstanding for the year ended December 31, 2020. (Round answer to 0 decimal places, e.g. 5,275.)

Weighted average number of shares outstanding.

2) Carla Vista Limited had 42,600 common shares outstanding on January 1, 2020. On March 1, 2020, Carla Vista issued 20,400 shares in exchange for equipment. On July 1, Carla Vista repurchased and cancelled 12,000 shares. On October 1, 2020, Carla Vista declared a 3–for–1 stock split.

Calculate the weighted average number of shares outstanding for Carla Vista for the year ended December 31, 2020.

Weighted average number of shares outstanding

Answer 1

Requirement 1

Date	Share Changes	Share Outstanding
01-Jan	beginning balance	6,56,400
01-Mar	159,000 shares issued	4,97,400
01-Sep	64,200 shares repurchased and cancel	4,33,200
31-Dec	ending balance	4,33,200

dates	shares outstanding	portion of year outstanding	weighted shares
1-jan to 1-mar	6,56,400	2 months	109,400 (6,56,400x2/12)
1-march to 1-sep.	4,97,400	6 months	248,700 (497,400x6/12)
1-sep. to 31-Dec	4,33,200	4 months	144,400 (433,200x4/12)
weighted average number of shares	5,02,500

Requirement 2

Date	Share Changes	Share Outstanding
01-Jan	beginning balance	42,600
01-Mar	20,400 shares issued for equipment	63,000
01-Jul	12,000 shares repurchased and cancel	51,000
01-Oct	stock split 3 for 1	1,53,000
31-Dec	ending balance	1,53,000

dates	shares outstanding	portion of year outstanding	weighted shares
1-jan to 1-mar	42,600	2 months	7,100(42,600 x 2/12)
1-march to 1-July	63,000	4 months	21,000 (63,000 x 4/12)
1-July to 1- Oct.	51,000	3 months	12,750 (51,000 x 3/12)
1-Oct. to 31-Dec.	1,53,000	3 months	38,250 (153,000 x 3/12)
weighted average number of share	79,100