Question

Saved The balance sheet caption for common stock is the following: Common stock without par value, 4,100,000 shares authorized, 770,000 shares issued, and 740,000 shares outstanding $ 4,000,000 Required: a. Calculate the average price at which the shares were issued. b. If these shares had been assigned a stated value of $1 each show how the caption here would be different c. If a cash dividend of $0.18 per share were declared, calculate the total amount of cash that would be paid to stockholders. d. What accounts for the difference between issued shares and outstanding shares? Required A Required B Required Required D Calculate the average price at which the shares were issued. (Round your answer to 2 decimal places.) Average issue price per share Required A Required B > 5 Score answer

Answer 1

Answer

· Requirements asked

A	Average issue price per share	$5.19	$4000000/770000 shares issued
B	Common Stock at stated value (770000 issued x $ 1)	$770,000
	Additional paid in capital ($4000000 - 770000)	$3,230,000
	Total Paid in Capital	$4,000,000
C	Total Cash dividend (740000 shares outstanding x  $ 0.18)	$133,200
D	Difference between issued shares & outstanding shares	Treasury Shares (30000 shares)