weighted average number of shares 452635

E16 15 (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, 2011				2,400,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2012				240,000
3. Shares issued for cash on March 31, 2013				2,000,000
Number of common shares issued and outstanding at December 31, 2013				4,640,000
4. A 2 for 1 stock split of Gogean’s common stock took place on March 31, 2014

Instructions:
(a) Compute the weighted average number of common shares used in computing earnings per common share for 2012 on the 2013 comparative income statement.


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