Question

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 $8 per share. Shares held as treasury stock, 10,000 shares, cost $6 per share. Net income for the current year, $481,000. Common Stock account, $150,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $800,000. Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 2. Shares issued Shares outstanding The balance in Additional Paid-in Capital would be Earnings per share is Total dividends paid on common stock during the current year 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 voted a 2-for-1 stock split. After the stock split, the par value per share will be

Answer 1

page-01 Answers Given details common stock = ( fepar) Shares authorized – 5,000,000 issue price = $8 per share tareasury stock = 10,000 shares treasury stock.costs & Sper share. net income for the current year = 1 481,000 common stock account = $ 150000 dividends declared 4 paid during current year - $2 per share Retained earnings balance, beginning of year $800,000. Required O shares issued, common stock par value 150000 shages issued $ 75000

page:02 shares outstanding = share issued - treasury stock 5000 - 10,000 shares out standing - 65000 @ Additional capital , share issued x(issued police - pan) Addition = 75000*(8-) = 450000 Additional capital o Gerning per share - net income outstanding shares 481000 65000 Earning per share = 7.40] Total divided paid on common stock = outstanding shares x dividend scate = 65000 m2 . 130,000 ② Toteasury Treasury stock = 10.000XG = 60,000

page-03 © par value per share after profit = pauvalue moto 65000 7.40 yearl u shares issued 75000 - shares outstanding 2. The balance in additional paid-in capital would be 450000_ 3. Carnings per share is 4. Total dividends paid on common stout during cunsirent 130000 Toneaswin stock should be reported in the 5. Stock holders equity section of the balance ' sheet in the amount of 60,000 Assume that the board of directos voteda G. 2109-1 stock split. Aftes the stock Split, the 1 Elpán value pey share will be