Computing the Number of Unissued Shares The balance sheet for Crutcher Corporati

Question

Computing the Number of Unissued Shares The balance sheet for Crutcher Corporation reported 247,000 shares outstanding, 300,000 shares authorized, and 20,000 shares in treasury stock. Compute the maximum number of new shares that Crutcher could issue.

Determining the Amount of a Dividend Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and 100,000 shares of treasury stock. The company’s board of directors declares a dividend of 50 cents per share of common stock. What is the total amount of the dividend that will be paid?

Recording Dividends On April 15, 2010, the board of directors for Auction. com declared a cash dividend of 40 cents per share payable to stockholders of record on May 20. The dividends will be paid on June 14. The company has 500,000 shares of stock outstanding. Prepare any necessary journal entries for each date:

Explanation / Answer

Total share issued=247,000+20,000=267,000 300,000-267,000=33,000 issue share 33,000 +20,000 reissue tr sh=53,000 issue and tresury shares reissue 270,000*.50=$135,000 April 15, Retaining Earnings (500,000*.40) 200,000 Div Payable 200,000 May 20 Memo entry June 14 Div Payable-common 200,000 Cash 200,000

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