At December 31, the records of Nortech Corporation provided the following select

ID: 2592616 • Letter: A

Question

At December 31, the records of Nortech Corporation provided the following selected and incomplete data Common stock (par $1 no changes during the current year) Shares authorized, 500,000 Shares issued, _?_;issue price $19 per share Common Stock account $170,000 Shares held as treasury stock, 2,700 shares, cost $17 per share Net income for the current year, $100,380 Dividends declared and paid during the current year, $36,806 Retained Earnings balance, beginning of year, $152,000 Required Complete the following: (Round "per share" answers to 2 decimal places.) TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share Shares Authorized Shares Issued 1-c. Shares Outstanding 2. The Balance in Additional Paid-in Capital would be 3. Earnings per Share is 4. Dividends Paid per Share of Common Stock is Treasury Stock should be Reported in the Stockholders' Equity Section of the Balance Sheet in the Amount of Assume that the Board of Directors Approved a 2-for-1 Stock Split. After the Stock Split, the Par Value per Share will be

Explanation / Answer

1-a

Shares Authorized

500,000 Shares

1-b

Shares Issued

$170,000/ $1 = 170,000 Shares

1-c

Shares Outstanding

170,000 Shares – 2700 (Treasury) = 167,300 Shares

Balance in Additional Paid-In-Capital

170,000 Shares x ($19 - $1) = $3,060,000

Earnings Per Share

$100,380/ 167,300 = $0.60

Dividend Paid Per Share of Common Stock is

$36,806/ 167,300 = $0.22

Treasury Stock should be Reported in the Stockholders’ Equity Section of Balance Sheet in the Amount of

2700 Shares x $17 Per Share = $45,900

Assume that the Board of Directors Approved a 2-for-1 Stock Split. After the Stock Split, the Par Value Per Share will be

Since after a 2-for-1 Stock Split, Number of Shares Will Double, the Par Value of A Share will be $0.50.

1-a