On January 1, 2021, Sandhill Corp. had 459,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.

February 1 Issued 126,000 shares

March 1 Issued a 10% stock dividend

May 1 Acquired 101,000 shares of treasury stock

June 1 Issued a 3-for-1 stock split

October 1 Reissued 62,000 shares of treasury stock

Required:

(a) Determine the weighted-average number of shares outstanding as of December 31, 2021.

shares 1,714,250

Explanation:

When there is a stock split is considered as it occur at the very beginning of the year therefore all transaction before the split are multiplier by the split ratio.

The weigth is determinate by the monts remaining for the end of the year over the 12 months of the year

Date / / Shares / / Weights / / Weightes shares

beginning 459,000

split 3-1 1,377,000 1 1377000

01-feb 378000 0.917 346,500

01-mar 175500 0.833 146,250

01-may - 303000 0.667 - 202,000

01-jun STOCK SPLIT

01-oct 62,000 0.75 46,500

1,714,250