| E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial | ||||||
| reporting. The company is authorized to issue | 9,000,000 | shares of | $10 | |||
| par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities. | ||||||
| 1. Number of common shares issued and outstanding at December 31, 2012 | 2,000,000 | |||||
| 2. Shares issued as a result of a 10% stock dividend on September 30, 2013 | 200,000 | |||||
| 3. Shares issued for cash on March 31, 2014 | 2,000,000 | |||||
| Number of common shares issued and outstanding at December 31, 2014 | 4,200,000 | |||||
| 4. A 2-for-1 stock split of Gogean’s common stock took place on March 31, 2015 | ||||||
| Instructions: | ||||||
| (a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. |
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