Question

PA11-3 Finding Missing Amounts [LO 11-2, LO 11-3, LO 11-51 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, 11,200 shares, cost $6 per share Net income for the current year, $452,160. 1 Common Stock account, $148,000. Dividends declared and paid during the current year, $2 per share Retained Earnings balance, beginning of year, $78 Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 1. Shares issued Shares outstanding The balance in Additional Paid-in Capital would be 3. 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

Solection - Shares issued to Issued shares Treasury stocka Share outstanding Common stock 4148000 - - 74000 shares 42 par 74000 shares (11200) Shares → 62800 shares 20 The is balance in $ 444000 Additional paid - in - Capital Account ((48-92) * 74000 Shares) 30 Eps on net income is $ 70g - Net Income for Current year outstanding shares - $452160 = 47-2 per share 62800 shares Total dividends paid on Common stock during the year is $125600 (62800 shares y $ 2 pershave) Den es 4 Total divie Treasury stock should be reported on the balance sheet elnder the major caption stockholder's equity as a deduction in the amount of $ 67200 (11200 shares x 96 per share) After the a-for-1 split, the par value per share will be ceet in half to $1 6.