PA11-3 Finding Missing Amounts [LO 11-2, LO 11-3, LO 11-5] At December 31 the re
ID: 2522860 • Letter: P
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PA11-3 Finding Missing Amounts [LO 11-2, LO 11-3, LO 11-5] 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 $8 per share. Shares held as treasury stock, 11,200 shares, cost $6 per share. Net income for the current year, $452,160 Common Stock account, $148,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $780,000 Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 1. Shares issued Shares outstanding This is a numeric cell, so please enter numbers only. 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is 4. Total dividends paid on common stock during the current year is 5 6 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 beExplanation / Answer
Shares Issued [ Common Stock Account / Par value per Share]
[$148,000 / $2]
Shares outstanding [ Shares issued - Treasury stock]
[74,000 - 11,200]
Earning Per Share [ Net Income / Shares outstanding ]
[$452,160 / 62,800]
1Shares Issued [ Common Stock Account / Par value per Share]
[$148,000 / $2]
74,000Shares outstanding [ Shares issued - Treasury stock]
[74,000 - 11,200]
62,800 2 The balance in Additional Paid in Capital [($8 - $2) * 74,000 ] $444,000 3Earning Per Share [ Net Income / Shares outstanding ]
[$452,160 / 62,800]
$7.20 4 Total dividends paid on common stock during the current year [Dividend per sahre * Shares outstanding] [ $2 * 62,800 ] $125,600 5 Treasury stock should be reported in stockholders's equity of balance sheet [11,200 * $6] $67,200 6 After the stock split , the par value per share will be [ $2 par vlaue / 2 ] $1Related Questions
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