ESCI 111 Quiz 10 PA11-3 Finding Missing Amounts /LO 11-2, LO 11-3, LO 11-5 At De

Question

ESCI 111 Quiz 10 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 $9 per share. Shares held as treasury stock, 10,100 shares, cost $7 per share. Net income for the current year, $490,500. Common Stock account, $151,000. Dividends declared and paid during the current year, $2 per share Retained Earnings balance, beginning of year, $810,000. Complete the following: (Round "Earnings per share" to 2 decimal places.) 1. Shares issued Shares outstanding 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. 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 References eBook & Resources : FI F5 F7

Explanation / Answer

the following is the required table along with simulatneous workings in the brackets:

1 Shares issued (common stock account / par value per stock)=>(151,000/$2) 75,500 Shares outstanding (shares issued - treasury stock) =>(75,500-10,100) 65,400 2 The balance in additional paid in capital will be (issued shares * premium per share) => (75,500 *($9 - $2) $528,500 3 Earnings per share is (net income / shares outstanding)=>(490,500 / 65,400) $7.50 4 Total dividends paid on common stock during the current year (shares outstanding * dividend per share) =>(65400*$2) $130,800 5 Treasury stock to reported at the amount of (10,100 * $7) $70,700 6 After 2 for 1 stock split the par value per share will be ($2 * 1/2) $1

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