P11-1 Finding Missing Amounts LO 11-1, 11-2, 11-3, 11-4, 11-6 At the end of the
ID: 2529383 • Letter: P
Question
P11-1 Finding Missing Amounts LO 11-1, 11-2, 11-3, 11-4, 11-6 At the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes in account during the year Shares authorized: 200,000 Shares issued Treasury stock: 3,000 shares (repurchased at $20 per share). The treasury stock was acquired after a stock split was announced. Net income: S240,340 Dividends declared and paid: $123,220. Retained earnings beginning balance: $555,000. (all shares were issued at $17 per share. Total cash collected: $2,125,000) Required: 1. Complete the following tabulation Shares authorized Shares issued Shares outstanding 200.000 125,000 122,000 2. Calculate the balance in the Additional Paid-in Capital account. dditional paid-in S 875,000Explanation / Answer
Solution 1:
Shares authorized = 200000
Share issued = $2,125,000 / $17 = 125000 shares
Shares outstanding = Share issued - Treasury stock = 125000 - 3000 = 122000 shares
Solution 2:
Par value of share issued = 125000*10 = $1,250,000
Balance in additional paid in capital = $2,125,000 - $1,250,000 = $875,000
Solution 3:
Earning per share = Net Income / Outstanding shares = $240,340 / 122000 = $1.97
Solution 4:
Dividend per share = Dividend paid / Outstanding shares = $123,220 / 122000 = $1.01
Solution 5:
Treasury stock will be shown in balance sheet under stock holder equity section as deduction from stockholder equity. Amount to be shown = 3000 * $20 = $60,000
Solution 6:
Par value per share after stock split = $10 / 2 = $5
Nos of shares outstanding after stock split = 122000*2 = 244000 shares
Solution 7:
No entry is required for stock split.
Solution 8:
Journal Entries Transaction Particulars Debit Credit 1 Retained Earnings Dr (122000*10%$21) $256,200.00 To Stock dividend distributable $256,200.00 (to record declaration of stock dividend) 2 Stock Dividend distributable Dr $256,200.00 To Common Stock $122,000.00 To Paid in capital in excess of Par - Common stock $134,200.00 (To record distribution of stock dividend)Related Questions
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