A20-6 Weighted Average Common Shares (LO 20-2) The following cases are independent. Case A Jethrow Ltd. had 1,800,000 common shares outstanding on 1 January 20x2. . On 27 February 208,000 shares were issued for $58 each. 308,000 shares vere issued on 1 August. A 2-for-1 stock split was distributed on 30 August. Case B On 1 January 20X7, Doomsday Corp. had 208,000 nonvoting Series A shares and 608,000 Series B voting shares outstanding. Series A shares have a 54 per share cumulative dividend paid quarterly and are convertible into two Series B shares at any time after 31 December 20X9. On 1 October 20x7, 30,800 Series A shares vere converted to B shares. On 1 December 20x7, 80,000 Series B shares were retired for cash. Required: For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31 December year-end. (Do not round intermediate calculations. Round your answers to the nearest whole number.) Number of shares Case A 1,401,111 Case B 949,133
A20-6 Weighted Average Common Shares (LO 20-2) The following cases are independent. Case A Jethrow Ltd. had 1,800,000 common shares outstanding on 1 January 20x2. . On 27 February 208,000 shares were issued for $58 each. 308,000 shares vere issued on 1 August. A 2-for-1 stock split was distributed on 30 August. Case B On 1 January 20X7, Doomsday Corp. had 208,000 nonvoting Series A shares and 608,000 Series B voting shares outstanding. Series A shares have a 54 per share cumulative dividend paid quarterly and are convertible into two Series B shares at any time after 31 December 20X9. On 1 October 20x7, 30,800 Series A shares vere converted to B shares. On 1 December 20x7, 80,000 Series B shares were retired for cash. Required: For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31 December year-end. (Do not round intermediate calculations. Round your answers to the nearest whole number.) Number of shares Case A 1,401,111 Case B 949,133
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh.173.
Transcribed Image Text:A20-6 Weighted Average Common Shares (LO 20-2)
The following cases are independent.
Case A Jethrow Ltd. had 1,800,000 common shares outstanding on 1 January
20x2.
. On 27 February 208,000 shares were issued for $58 each.
308,000 shares vere issued on 1 August.
• A 2-for-1 stock split was distributed on 30 August.
Case B On 1 January 20X7, Doomsday Corp. had 208,000 nonvoting Series A
shares and 608,000 Series B voting shares outstanding. Series A
shares have a 54 per share cumulative dividend paid quarterly and are
convertible into two Series 3 shares at any time after 31 December
20X9.
• On 1 October 20x7, 30,800 Series A shares vere converted to B
shares.
On 1 December 20X7, 80,000 Series B shares were retired for cash.
Required:
For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31
December year-end. (Do not round intermediate calculations. Round your answers to the nearest whole number.)
Number of shares
Case A
1,401,111
Case B
949,133
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