1. (Weighted-Average Number of Shares) Gogean 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 Gogean issued any potentially dilutive securities. Listed below is a summary of Gogean's common stock activities.
1. Number of common shares issued and outstanding at December 31, 2009 2,400,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2010 240,000
3. Shares issued for cash on March 31, 2011 2,000,000Number of common shares issued and outstanding at December 31, 2011 4,640,000
4. A 2-for-1 stock split of Gogean's common stock took place on March 31, 2012.
(a) Compute the weighted-average number of common shares used in computing earnings per common share for 2010 on the 2011 comparative income statement.
(b) Compute the weighted-average number of common shares used in computing earnings per common share for 2011 on the 2011 comparative income statement.
(c) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2011 on the 2012 comparative income statement.
(d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2012 on the 2012 comparative income statement.(CMA adapted)