PLS HELP! ASAP! Thank you in advance! At December 31 the records of Kozmetsky Co

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PLS HELP! ASAP! Thank you in advance!

At December 31 the records of Kozmetsky Corporation provided the following selected and incomplete data:

At December 31 the records of Kozmetsky Corporation provided the following selected and incomplete data Common stock (par $2 no changes during the current year) Shares authorized, 5,000,000. Shares issued, issue price $7 per share. Shares held as treasury stock, 12,000 shares, cost $5 per share. Net income for the current year, $371,200. Common Stock account, $140,000 Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, 5700,000 Required: Complete Complete the following: (Round "Earnings per share" to 2 decimal places.) 1. Shares issued 2. 3. 4. 5 6 Shares outstanding The balance in Additional Paid-in Capital would be Earnings per share is Total dividends paid on common stock during the current year 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 voted a 2-for-1 stock split. After the stock split, the par value per share will be

Explanation / Answer

1./ COMMON STOCK ACCOUNT=$140000

PAR VALUE OF SHARE =$2

NO OF SHARE ISSUED ($140000 / $2)=70000

AUTHORISED SHARE =5000000

LESS- ISSUED AS COMMON STOCK =(70000)

LESS- HELD AS TREASURY STOCK =(12000)

OUTSTANDING SHARE =4918000

2./ ISSUE PRICE OF COMMON STOK =$7

LESS- FACE VALUE OF COMMON STOCK=$2

ADDITIONAL PAID IN CAPITAL =$5

NO OF COMMON COST =70000

TOTAL ADDITIONAL PAID IN CAPITAL =$350000

LESS ADDITIONAL CAPITAL IN TREASURY STOCK($3 *12000 SHARE) =($36000)

NET ADDITIONAL PAID IN CAPITAL =$314000

3./ NET INCOME FOR THE CURRENT YEAR =$371200

NO OF COMMON STOCK ISSUED =70000

EARNING PER SHARE =$5.30

4./ DIVIDEND DICLARED AND PAID PER SHARE =$2

NO OF COMMON STOCK =70000

TOTAL DIVIDEND($2 * 70000) =$140000

5./ TREASURY STOCK SHOULD BE REPORTED IN SHARE HOLDERS EQUITY ($5 * 12000)=$60000

6./ AFTER 2 FOR 1 STOCK SPLIT PAR VALUE OF SHARE WILL BE ($2 / 1)=$1

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