E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 R$10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo's ordinary share activities. 1. Number of ordinary shares issued and outstanding at December 31, 2021 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2022 240,000 3. Shares issued for cash on March 31, 2023 2,000,000 Number of ordinary shares issued and outstanding at December 31, 2023 4,640,000 4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2024 Instructions a. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2022 on the 2023 comparative income statement. b. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2023 on the 2023 comparative income statement. c. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2023 on the 2024 comparative income statement. d. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2024 on the 2024 comparative income statement.
E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 R$10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo's ordinary share activities. 1. Number of ordinary shares issued and outstanding at December 31, 2021 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2022 240,000 3. Shares issued for cash on March 31, 2023 2,000,000 Number of ordinary shares issued and outstanding at December 31, 2023 4,640,000 4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2024 Instructions a. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2022 on the 2023 comparative income statement. b. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2023 on the 2023 comparative income statement. c. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2023 on the 2024 comparative income statement. d. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2024 on the 2024 comparative income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
E16-16. Please show all workings clearly.
Transcribed Image Text:E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year
for financial reporting. The company is authorized to issue 9,000,000 R$10 par ordinary
shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a
summary of Portillo's ordinary share activities.
1. Number of ordinary shares issued and outstanding at December 31, 2021
2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2022
240,000
3. Shares issued for cash on March 31, 2023
2,000,000
Number of ordinary shares issued and outstanding at December 31, 2023
4,640,000
4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31,
2024
Instructions
a. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2022 on the 2023 comparative income statement.
b. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2023 on the 2023 comparative income statement.
c. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2023 on the 2024 comparative income statement.
d. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2024 on the 2024 comparative income statement.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education