Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2010. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted-average number of shares outstanding if the 30,000...

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Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2010. On May 1, Tomba issued 30,000 shares.

(a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash.
(b) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a stock dividend.


Answered Same DayDec 22, 2021

Answer To: Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2010. On May 1, Tomba...

Robert answered on Dec 22 2021
121 Votes
a)
If stocks were issued for Cash:
Date
Shares
outstanding
Portion of the
year
Weighte
d
shares
1st Jan 300000 12/12 300000
1st
may 30000 8/12 20000
Weighted Average number of shares outstanding = 320000.
b)
If shares were issued in stock dividend:
Weighted Average...
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