Blossom Corporation had 291,000 shares of common stock outstanding on January 1, 2017. On May 1, Blossom issued 29,400 shares. (a) Compute the weighted-average number of shares outstanding if the 29,400 shares were issued for cash. Weighted-average number of shares outstanding

Weighted-average number of shares = 310,600

Explanation:

Given:

Total shares on January 1, 2017 = 291,000 (for 12 months)

Issue of new shares On May 1, 2017 = 29,400 (For 8 months)

Computation of Weighted-average number of shares:

Weighted-average number of shares = [291,000 * (12/12) ] + [29,400 * (8/12) ]

Weighted-average number of shares = [291,000 + 19,600 ]

Weighted-average number of shares = [310,600]