Question

Exercise 16-16 (Part Level Submission)

On January 1, 2015, Wilke Corp. had 538,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account.

February 1 Issued 138,000 shares

March 1 Issued a 10% stock dividend

May 1 Acquired 109,000 shares of treasury stock

June 1 Issued a 3-for-1 stock split

October 1 Reissued 79,200 shares of treasury stock Collapse question part

(a) Determine the weighted-average number of shares outstanding as of December 31, 2015. The weighted-average number of shares outstanding

The weighted-average number of shares outstanding

Answer 1

Since there is a 3-1 stock split and a stock dividend, the previous numbers will be restated

The outstanding shares thus are

2,153,300

Date	Transaction	Shares outstanding	Restated	Restated Shares outstanding	Outstanding for (weight)	Weighted shares
1-Jan	Beg balance	538000	*1.1*3	1775400	1/12	147950
1-Feb	Stock issued	676000	*1.1*3	2230800	1/12	185900
1-Mar	Stock dividend	743600	*3	2230800	2/12	371800
1-May	Treasury	634600	*3	1903800	1/12	158650
1-Jun	Stock split	1903800		1903800	4/12	634600
1-Oct	Reissue T/S	713800		2617600	3/12	654400
					Weighted average	2153300