Argonaut Enterprises had 500,000 shares of common stock outstanding on January 1.On June 1,Argonaut issued an additional 60,000 common shares.Argonaut has no treasury stock.The weighted average number of common shares outstanding for the year was ________.

Question

Quizplus · Accepted Answer

To calculate the weighted average number of common shares outstanding, we need to take into account the number of shares outstanding for each period weighted by the amount of time they were outstanding. 
From January 1 to June 1 (151 days), 500,000 shares were outstanding. 
From June 1 to December 31 (215 days), 560,000 shares were outstanding (500,000 + 60,000). 
Weighted average number of common shares outstanding = (500,000 x 151/365) + (560,000 x 215/365) = 535,000. Therefore, the correct answer is D.

Argonaut Enterprises Had 500,000 Shares of Common Stock Outstanding on January