D Chapter 11 Graded Homework × ? e Solved: Finding Missing Amou??How to Calculat
ID: 2529534 • Letter: D
Question
D Chapter 11 Graded Homework × ? e Solved: Finding Missing Amou??How to Calculate the Number Ragan -? ezto.mheducation.com/hm.tpx?--0.32448768937865125-1524537086425 PB11-3 Finding Missing Amounts [LO 11-2, LO 11-3, LO 11-5] At December 31, the records of Seacrest Enterprises provided the following selected and incomplete data: Common stock (par $1; no changes during the current year) Shares authorized, 10,000,000. Shares issued, ?, issue price $10 per share. Shares held as treasury stock, 50,000 shares, cost $11 per share. Net income for the current year, $1,400,000 Common Stock account, $750,000. Dividends declared and paid during the current year, $1 per share. Retained Earnings balance, beginning of year, $36,400,000. Required Complete the following: (Round per share to 2 decimal places.) 1. Shares issued Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Eamings per share is 4. Total dividends paid on common stock during the current year is 5 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
1. shares issued ($750000 common stock account / $1 par value) = 750000
shares outstanding (750000 shares- 50000 treasury) = 700000
2. The balance in additional paid in capital would be (750000 * ($10- $1)) = $6750000
3. Earning per share [$1400000 net income / 700000 outstanding shares] = $2
4. Total dividend paid on common stock during the current year ( $1 * 700000 outstanding shares) = $700000
5. Treasury stock should be reported in the stockholder's equity (50000 * $11 ) = $550000
6. After the split.the par value per share [$1 * 1/2 spilt ratio] = $0.5 per share
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.