CMA Study Group

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------

Is the answer 'C' i.e., 111,750?

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Ashvin Kulkarni
Accountant
Pune
India
------------------------------

Original Message:
Sent: 10-21-2020 03:17 AM
From: Ruqaiya Khajuriwala
Subject: CMA PART-2 SECTION-A

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------

Hi,

I believe the answer is A

Shares                  weighted average
100000*12/12         100000
10000*9/12              7500
10/100*107500        10750            [100000+7500=107500]
5000*3/12                (1250)
Total                        117000


------------------------------
Sanjana
------------------------------

Original Message:
Sent: 10-21-2020 03:17 AM
From: Ruqaiya Khajuriwala
Subject: CMA PART-2 SECTION-A

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------

Hi,

I believe the answer is A

Shares                       Weighted Average

100000*12/12            100000
10000*9/12                 7500
107500*10/100          10750                         [100000+7500=107500]
5000*3/12                  (1250)
Total                          117000

------------------------------
Sanjana
------------------------------

Original Message:
Sent: 10-21-2020 03:17 AM
From: Ruqaiya Khajuriwala
Subject: CMA PART-2 SECTION-A

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------

Hello, the answer is A. 117,000
I had the same answer suggestion like Sanjana M

------------------------------
KHOA
------------------------------

Original Message:
Sent: 10-21-2020 03:17 AM
From: Ruqaiya Khajuriwala
Subject: CMA PART-2 SECTION-A

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------

Hi,

Ans is A

Pls see explanation below. Hope this helps.

Date                      Change of Shares

                              From transaction    Adjustment                 Weight                                 WACSO

1/1                        100,000                             1.10                      12/12                                110000

4/1                       10000                                    1.10                           9/12                                    8250

7/1                       -                                              -                              -                                              -

10/1                       (5000)                                   -                              3/12                                       (1250)  

                                                                                                                                                 ------------------------         

                                                                                                WACSO                                   117,000

                                                                                                                                          ---------------------------------

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Shashikala Mudaliar
Unemployed
------------------------------

Original Message:
Sent: 10-24-2020 08:13 PM
From: KHOA VU TRAN
Subject: CMA PART-2 SECTION-A

Hello, the answer is A. 117,000
I had the same answer suggestion like Sanjana M

------------------------------
KHOA

Original Message:
Sent: 10-21-2020 03:17 AM
From: Ruqaiya Khajuriwala
Subject: CMA PART-2 SECTION-A

Please can someone help me out with this question?

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.


------------------------------
Ruqaiya Khajuriwala
Student
Pune
India
------------------------------