At December 31, the records of Seacrest Enterprises provided the following selec
ID: 2591916 • Letter: A
Question
At December 31, the records of Seacrest Enterprises provided the following selected and incomplete data:
Complete the following: (Round per share to 2 decimal places.)
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, 59,000 shares, cost $11 per share. Net income for the current year, $2,264,900 Common Stock account, $840,000. Dividends declared and paid during the current year, $1 per share. Retained Earnings balance, beginning of year, $37,300,000. 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. Earnings 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 6. 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
1(a)
Shares Issued
840,000 Shares
1(b)
Shares outstanding
781,000 shares
2.
The balance in Additional Paid-in Capital would be
$7,560,000
3.
Earnings per share is
$2.9
4.
Total dividends paid on common stock during the current year is
$781,000
5.
Treasury stock should be reported in the stockholders’ equity section of the balance sheet in the amount of
$649,000
6.
Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value per share will be
$0.5
=840,000 – 59,000
Shares outstanding = 781,000 Shares
= 840,000 Shares * (10 – 1)
Closing Additional paid up capital = 7,560,000
=$2,264,900 / 781,000 Shares
EPS = $2.9
= $1 * 781,000 Shares
= $781,000
= 59,000 shares * $11 per share
= $649,000
= $1/ 2
= $0.5
Shares issued
1(a)
Shares Issued
840,000 Shares
1(b)
Shares outstanding
781,000 shares
2.
The balance in Additional Paid-in Capital would be
$7,560,000
3.
Earnings per share is
$2.9
4.
Total dividends paid on common stock during the current year is
$781,000
5.
Treasury stock should be reported in the stockholders’ equity section of the balance sheet in the amount of
$649,000
6.
Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value per share will be
$0.5
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