CMA Study Group

At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

I believe the answer is A 117,000 shares

		Stock	Stock after 10% Dividend	Weight	Weighted Average
A	1-Jan	100,000	110,000	100%	110,000
B	1-Apr	10,000	11,000	75%	8,250
C	1-Oct	(5,000)	(5,000)	25%	(1,250)
					117,000
A	Weight is 100% because the shares were there at Jan 1
B	Weight is 75% (9/12) because the shares were issued April 1
C	Weight is 25% (3/12)because the shares were only bought back Oct 1.

-------------------------------------------
Lisa Heffernan
Controller
Crane Payment Solutions Inc.
Derry NH
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

hey

i am sure the answer is Wrong. The real answer is 117000. not 117750.

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

Hi,

I'm confused on this one. My answer isn't even one of the selections. Can someone explain how they got the correct answer. I will explain how I got the incorrect one :)

111,000	0.25	27,750
121,000	0.5	60,500
116,000	0.25	29,000

111,000 - The first one is the 100,000 + the 10% July stock dividend (I'm treating it as thought it were                    outstanding from the beginning of the year, thus 100,000+11,000

121,000 - The 111,000 + the 10,000 new issue outstanding for 6 months

116,000 - The 121,000 minus the 5000 treasury shares.


So I come up with an answer of 117,250.

Thanks. Your help will be appreciated.

James







-------------------------------------------
James Raines
Accountant
Shreveport LA
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 12:56 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey

i am sure the answer is Wrong. The real answer is 117000. not 117750.

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

hey,

u made a mistake

10% stock dividend is 110,000 not 111,000

If u use 110,000, u will come up 117000

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 01:53 PM
From: James Raines
Subject: calculating weighted average of outstanding stock

Hi,

I'm confused on this one. My answer isn't even one of the selections. Can someone explain how they got the correct answer. I will explain how I got the incorrect one :)

111,000	0.25	27,750
121,000	0.5	60,500
116,000	0.25	29,000

111,000 - The first one is the 100,000 + the 10% July stock dividend (I'm treating it as thought it were                    outstanding from the beginning of the year, thus 100,000+11,000

121,000 - The 111,000 + the 10,000 new issue outstanding for 6 months

116,000 - The 121,000 minus the 5000 treasury shares.


So I come up with an answer of 117,250.

Thanks. Your help will be appreciated.

James







-------------------------------------------
James Raines
Accountant
Shreveport LA
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 12:56 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey

i am sure the answer is Wrong. The real answer is 117000. not 117750.

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

thanks to all for participating. i solved it (117000) but the ima says another answer (111,750) which i think is wrong. I agree with you that the correct answer is 117000

-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------






Original Message:
Sent: 10-26-2012 02:51 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey,

u made a mistake

10% stock dividend is 110,000 not 111,000

If u use 110,000, u will come up 117000

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 01:53 PM
From: James Raines
Subject: calculating weighted average of outstanding stock

Hi,

I'm confused on this one. My answer isn't even one of the selections. Can someone explain how they got the correct answer. I will explain how I got the incorrect one :)

111,000	0.25	27,750
121,000	0.5	60,500
116,000	0.25	29,000

111,000 - The first one is the 100,000 + the 10% July stock dividend (I'm treating it as thought it were                    outstanding from the beginning of the year, thus 100,000+11,000

121,000 - The 111,000 + the 10,000 new issue outstanding for 6 months

116,000 - The 121,000 minus the 5000 treasury shares.


So I come up with an answer of 117,250.

Thanks. Your help will be appreciated.

James







-------------------------------------------
James Raines
Accountant
Shreveport LA
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 12:56 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey

i am sure the answer is Wrong. The real answer is 117000. not 117750.

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------

To be sure about my answer, I found from achieve of this question in "discussion"

-------------------------------------------
Ganesan Sivalingam
Accountant
Sharqiyah Desalination Co SAOG
Muscat
Oman
-------------------------------------------






Original Message:
Sent: 10-26-2012 05:31 PM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock

thanks to all for participating. i solved it (117000) but the ima says another answer (111,750) which i think is wrong. I agree with you that the correct answer is 117000

-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------






Original Message:
Sent: 10-26-2012 02:51 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey,

u made a mistake

10% stock dividend is 110,000 not 111,000

If u use 110,000, u will come up 117000

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 01:53 PM
From: James Raines
Subject: calculating weighted average of outstanding stock

Hi,

I'm confused on this one. My answer isn't even one of the selections. Can someone explain how they got the correct answer. I will explain how I got the incorrect one :)

111,000	0.25	27,750
121,000	0.5	60,500
116,000	0.25	29,000

111,000 - The first one is the 100,000 + the 10% July stock dividend (I'm treating it as thought it were                    outstanding from the beginning of the year, thus 100,000+11,000

121,000 - The 111,000 + the 10,000 new issue outstanding for 6 months

116,000 - The 121,000 minus the 5000 treasury shares.


So I come up with an answer of 117,250.

Thanks. Your help will be appreciated.

James







-------------------------------------------
James Raines
Accountant
Shreveport LA
United States
-------------------------------------------






Original Message:
Sent: 10-26-2012 12:56 PM
From: Bo Sun
Subject: calculating weighted average of outstanding stock


hey

i am sure the answer is Wrong. The real answer is 117000. not 117750.

Thanks
-------------------------------------------
Bo Sun
Other
Florence AL
United States
-------------------------------------------






Original Message:
Sent: 10-24-2012 11:47 AM
From: Ahmed Hassanein
Subject: calculating weighted average of outstanding stock


At the beginning of the year, Lewis Corporation had 100,000 shares of common stock
outstanding. During the year, the following transactions occurred.
Date Transaction
April 1            Issued 10,000 shares in exchange for land
July 1             Declared and distributed a 10% stock dividend
October 1      Purchased 5,000 shares of treasury stock

The number of shares that Lewis should use when computing earnings per share at the
end of the year is

a. 117,000.
b. 116,000.
c. 111,750.
d. 106,250
-------------------------------------------
Ahmed Hassanein
Accountant
ElDakhlia
Egypt
-------------------------------------------