mins OurXM Inbox (496) https/ ucation.com/Bow/connecthtml work Saved CP11-3 Find

Question

mins OurXM Inbox (496) https/ ucation.com/Bow/connecthtml work Saved CP11-3 Finding Missing Amounts [LO 11-2, LO 11-3, LO 11-5 At December 31, the records of Nortech Corporation provided the following selected and incomplete data: Common stock (par $1; no changes during the current year) Shares authorized, 500,000e. Shares issued, : issue price $28 per share. Conmon Stock account, $260,000. shares held as treasury stock, 3,680 shares, cost $26 per share. Net income for the current year, $269,220. Dividends declared and paid during the current year, $79,484 Retained Earnings balance, beginning of the year, $161,000,. Required: Complete the following: TIP. To determine the number of shares issued, divide the balance in the Common Stock acco value per share. (Round "per share" answers to 2 decimal places.) Shares Authorized 1 Shares Issued b. Shares Outstanding 2. The Balance in Additional Pald-in Capital would be 3. Earnings per Share is 4. Dividends Paid per Share of Common Stock is Treasury Stock should be Reported in the Stockholders Equity Section of the Balance Sheet in the Amount of Assume that the Board of Directors Approved a 2-for-1 Stock Split. After the Stock Split, the Par Value per Share will be

Explanation / Answer

Answer 1-a. Shares Authorized = 500,000 Answer 1-b. Shares Issued = $260,000 / $1 = 260,000 Shares Answer 1-c. Shares Outstanding = 260,000 shares (Issued Shares) - 3,600 Shares (treasury Stock) Shares Outstanding = 256,400 shares Answer 2. Balance in Additional Paid-in Capital = ($28 - $1) X 260,000 Shares Balance in Additional Paid-in Capital = $7,020,000 Answer 3. Earning Per Share = $269,220 (Net Income) / 256,400 (Shares Outstanding) Earning Per Share = $1.05 per share (approx.) Answer 4. Dividends Paid per Share = $79,484 (Dividends Paid) / 256,400 shares (Shares Outstanding) Dividends Paid per Share = $0.31 per share (Approx.) Answer 5. Treasury Stock reported in Stockholders' Equity Section = 3,600 Shares X $26 Treasury Stock reported in Stockholders' Equity Section = $93,600

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.