Jimbo Co.began operations Jan.1,2014.The following events related to common stock took place on the indicated dates during 2014. Jan.1 Issued 5,000 common shares
Apr)1 Purchased 400 treasury shares
May 1 Split 2-for-1
Aug)1 Issued 2,000 common shares
Dec)1 Issued a 20% stock dividend
Assuming no potentially dilutive securities,what are the weighted average shares for EPS in 2014? (Do not round intermediate calculations.Round your final answer to nearest whole number.)

Question

Quizplus · Accepted Answer

The weighted average shares calculation involves adjusting for stock splits and dividends. After the 2-for-1 split, the initial 5,000 shares become 10,000. Treasury shares are adjusted similarly, so 400 becomes 800. The 20% stock dividend increases shares by 20%. Calculating weighted average shares: [(10,000 - 800) * 3/12] + [9,200 * 4/12] + [11,200 * 4/12] + [13,440 * 1/12] = 12,280 shares.

Jimbo CoBegan Operations Jan