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From the practice on page 10-4 of the VLN, how many of shares of common stock were issued?_____

From the practice on page 10-4 of the VLN, how many of shares of common stock were issued?_____

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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From the practice on page 10-4 of the VLN, how many of shares of common stock were issued?_____
DIVIDENDS ON COMMON STOCK There are two requirements to be met for the Board of Directors to declare a CASH dividend. 1. Sufficient cash to pay the dividend 2. Sufficient retained earnings Dividend Dates Date of declaration Date of record Date of payment G, Inc., declares a $0.50 per share dividend on the 10,000 outstanding shares on October 31st to be paid on December 15th Date of Declaration (October 31) Date of Payment (December 15h) STOCK DIVIDENDS AND STOCK SPLITS Stock Dividends -Pro rata basis -Does not create a liability -Does not reduce assets -Capitalizes earnings Small stock dividend -< 25% - At market price Large stock dividend -25% or more - par value
Transcribed Image Text:DIVIDENDS ON COMMON STOCK There are two requirements to be met for the Board of Directors to declare a CASH dividend. 1. Sufficient cash to pay the dividend 2. Sufficient retained earnings Dividend Dates Date of declaration Date of record Date of payment G, Inc., declares a $0.50 per share dividend on the 10,000 outstanding shares on October 31st to be paid on December 15th Date of Declaration (October 31) Date of Payment (December 15h) STOCK DIVIDENDS AND STOCK SPLITS Stock Dividends -Pro rata basis -Does not create a liability -Does not reduce assets -Capitalizes earnings Small stock dividend -< 25% - At market price Large stock dividend -25% or more - par value
Practice J Corp Stockholders' Equity section from their 12/31 Balance Sheet is given: Paid in Capital Common stock ($0.01 par; authorized 100,000,000 shares, issued shares and $1,500 471,000 450,000 (30,000) outstanding Additional paid in capital Retained earnings Treasury stock (2,000 shares) Total Stockholders' Equity Complete the following statements and show your computations: 1. The number of shares of common stock issued was Shares Shares 2. The number of shares of common stock outstanding was 3. The average sales price of the common stock when issued was $ per share 4. What is the cost per share for the treasury stock? 5. Total Stockholders' Equity is per share 6. Assume 500 shares of the treasury stock are resold at $20 per share. Record the sale of treasury stock: 7. How much did "additional paid in capital" change when the 500 shares of treasury stock were sold? 8. What is the remaining balance in the Treasury Stock account? 9. What does the Stockholders’ Equity Section look like after the 500 shares of treasury stock is sold? Paid in Capital Common stock ($0.01 par; authorized 100,000,000 shares, issued shares and outstanding $1,500 Additional paid in capital Retained earnings 450,000 Treasury stock ( Total Stockholders' Equity shares) $ PART B: Earned Capital Retained Earnings Accumulated Deficit
Transcribed Image Text:Practice J Corp Stockholders' Equity section from their 12/31 Balance Sheet is given: Paid in Capital Common stock ($0.01 par; authorized 100,000,000 shares, issued shares and $1,500 471,000 450,000 (30,000) outstanding Additional paid in capital Retained earnings Treasury stock (2,000 shares) Total Stockholders' Equity Complete the following statements and show your computations: 1. The number of shares of common stock issued was Shares Shares 2. The number of shares of common stock outstanding was 3. The average sales price of the common stock when issued was $ per share 4. What is the cost per share for the treasury stock? 5. Total Stockholders' Equity is per share 6. Assume 500 shares of the treasury stock are resold at $20 per share. Record the sale of treasury stock: 7. How much did "additional paid in capital" change when the 500 shares of treasury stock were sold? 8. What is the remaining balance in the Treasury Stock account? 9. What does the Stockholders’ Equity Section look like after the 500 shares of treasury stock is sold? Paid in Capital Common stock ($0.01 par; authorized 100,000,000 shares, issued shares and outstanding $1,500 Additional paid in capital Retained earnings 450,000 Treasury stock ( Total Stockholders' Equity shares) $ PART B: Earned Capital Retained Earnings Accumulated Deficit
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