EPS Calculation

Dear Mike,

I see that you responded to Durdana’s query below,

I do not understand why you calculate 2 lines:

1 January 1,000,000*6/5*3/12=300,000
1 April 1,200,000*6/5*4/12=480,000

6/5, please explain?

Thanks

Hello dear tutor.
I have question regarding EPS calculation. (Kaplan)

An entity had 1 million shares in issue on 1 January 20X1. They issued 200,000 shares at market value on 1 April, followed by a 1 for 5 bonus issue on 1 August, with a further 300,000 issued at market value on 1 October.
If profit for the year ending 31 December 20X1 is $220,000, what is the basic earnings per share?

Answer is:
1 January 1,000,000*6/5*3/12=300,000
1 April 1,200,000*6/5*4/12=480,000
1 August 1,440,000* 2/12=240,000
1October 1,740,000*3/12=435,000
–––––––
Number of shares in EPS calculation 1,455,000
–––––––
The earnings per share for 20X1 would now be calculated as:
Original number 1,200,000
New issue (1 for 5) 240,000
–––––––––
New number 1,440,000
$220,000
–––––––––– = 15.1c
1,455,000

But I calculated like this:
1m*6/5*3/12=0.3m
1.2m*6/5*4/12=0.48m
1.2m*2/12=0.2m
1.5m*3/12=0.375 m
and bonus issue 1.2m/5=0.24m

total number of shares – 300 000+680 000+375 000+240 000=1 595 000 shares

I don’t understand these calculations:
1 August 1,440,000* 2/12=240,000
1October 1,740,000*3/12=435,000

Time apportionment is applied to bonus issue. Why?

Thank you in advance for your help