Can someone please show me how this is done? I can\'t figure it out.... Please H

Question

Can someone please show me how this is done? I can't figure it out.... Please HELP!!!

Weighted Average Shares

At the beginning of the current year, Hardin Company had 20,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year-end it had 63,800 shares outstanding:

Required:

Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number.

Weighted average shares outstanding:

Apr. 2 Issued 5,000 shares of stock. June 4 Issued 4,000 shares of stock. July 1 Issued a 10% stock dividend. Sept. 28 Issued a 2-for-1 stock split, reducing the par value to $5 per share. Oct. 3 Reacquired 1,000 shares as treasury stock. Nov. 27 Reissued the 1,000 shares of treasury stock.

Explanation / Answer

A B C (A*B*C) Sahres Shares Outstanding Restated Fraction of days Weighteg Average Shares 01-Jan Opening 20000 20000 2.4             0.25       11,967 02-Apr Issued shares 5000 25000 2.4             0.17       10,356 04-Jun Issued shares 4000 29000 2.4             0.07         5,148 01-Jul issue 10% stock dividend 2900 31900 2             0.24       15,557 28-Sep Issues 2 for 1 Stock split Shares 63800 63800             0.01            874 03-Oct Reacuired 1000 share -1000 62800             0.15         9,463 27-Nov Reissued 1000 Sahres 1000 63800         0.0959         6,118 Weighteg Average Shares       59,483 Example for Friction of days calculation 01-Jan (31+28+31+1)/365 02-Apr (29+31+3)/365 04-Jun (27)/365

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