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Common stock-calculate issue price and dividend amount The balance sheet caption for common stock is the following: Common stock without par value, 1,000,000 shares authorized, 200,000 shares issued, and 180,000 shares outstanding .. $2,600,000 Required: a. Calculate the average price at which the shares were issued. h. If these shares had been assigned a stated value of $1 each, show how the cap- tion here would be different.

Common stock-calculate issue price and dividend amount The balance sheet caption for common stock is the following: Common stock without par value, 1,000,000 shares authorized, 200,000 shares issued, and 180,000 shares outstanding .. $2,600,000 Required: a. Calculate the average price at which the shares were issued. h. If these shares had been assigned a stated value of $1 each, show how the cap- tion here would be different.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Common Stock—Calculate Issue Price and Dividend Amount** The balance sheet caption for common stock is as follows: --- *Common stock without par value, 1,000,000 shares authorized, 200,000 shares issued, and 180,000 shares outstanding ................................... $2,600,000* --- **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 $0.60 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?
Transcribed Image Text:**Common Stock—Calculate Issue Price and Dividend Amount** The balance sheet caption for common stock is as follows: --- *Common stock without par value, 1,000,000 shares authorized, 200,000 shares issued, and 180,000 shares outstanding ................................... $2,600,000* --- **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 $0.60 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?
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