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, 11,500 shares, cost $6 per share. Net income for the current year, $420,900. Common Stock account, $145,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $750,000. Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 1. 3. 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

dividend paid on Commodork during curandyrores 5. brutile pod 12 1. Shanes issued 72500 shanes Outstanding 61000 Paul The balance in Additional Paichincapilelusuldbe.$_435000 3. Fannings pershane is $6.90 Trecyceny stock should be, neporfedpin Uhe stockholdere clionof the balance shed in the amount of Asume that the board of directore votes? a 2.70m 1 | $ 69000 stocksplet Aften the stock split, the par velve pershane $ 1 Egiplana.lions I common stock - $ 145,000 par value $ share issued (4415.000) - 72500 (Ame) Shares outstanding a lisvere/ shares -Tresory stock =(72500 - 11500) 6.1000 CAns ) h. The balance in additional paid-en-capital account is [( issue prace - parvale ) x shanto issued ] - R98 - $2)72500] (6*72500) 3 of 435000 (AMS)

3. Fexrenings per share is : 1. Net Encome Eps on need income - shares outstanding ; $ 420,900 61000 of 6,90 CAnso) Ø. Total dividends paclon common slock ss : - (shares outstanding *9 a pershare) . (61000 X 82) . >$122000 (Ans) Treasury stock should be reported in the stockhololead equity seetion of balance sheet in the amount (11500 shares * $ 6 pers hares) o '$ 69000 Cans.) 6. After the stock splib, the parewelve pershare will be -(Pare value ). It of Cans)