The balance sheet caption for common stock is the following: Common stock without par value, 4,100,000 shares authorized, 840,000 shares issued, and 690,000 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 $0.12 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 outstandina sharor?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

hello, 

The balance sheet caption for common stock is the following:
Common stock without par value, 4,100,000 shares authorized,
840,000 shares issued, and 690,000 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 $0.12 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?
XAnswer is not complete.
Required A
Required B
Required C
Required D
If a cash dividend of $0.12 per share were declared, calculate the total anmount of cash that would be paid to stockholders.
Total cash dividend
Required B
Required D >
Transcribed Image Text:The balance sheet caption for common stock is the following: Common stock without par value, 4,100,000 shares authorized, 840,000 shares issued, and 690,000 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 $0.12 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? XAnswer is not complete. Required A Required B Required C Required D If a cash dividend of $0.12 per share were declared, calculate the total anmount of cash that would be paid to stockholders. Total cash dividend Required B Required D >
Expert Solution
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Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-parts solved please post the complete question and mention the sub-parts to be solved.

 

a : For calculating the average price at the time of issue share : 

Average Price = Amount received after issuing /  Shares issued.

= $4,000,000 / 840,000

= 4.76 per share 

 

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