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The following items were shown on the balance sheet of Easton Corporation on December 31, 2018: Stockholders' equity Paid-in capital Capital stock Common stock, $10 par value, 400,000 shares authorized; shares issued and outstanding. .$1,850,000 Additional paid-in capital In excess of par. 165,000 Total paid-in capital... 2,015,000 Retained earnings.. 750,000 Total paid-in capital and retained earnings. 2,765,000 270,000 Less: Treasury stock (18,000 shares). Total stockholders' equity... $2,495,000 Instructions Complete the following statements and show your computations. a) The number of shares of common stock issued was b) The number of shares of common stock outstanding was The common stock was issued for a total of S d) The cost per share of the treasury stock was $ e) The average issue price of the common stock was S f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $.

The following items were shown on the balance sheet of Easton Corporation on December 31, 2018: Stockholders' equity Paid-in capital Capital stock Common stock, $10 par value, 400,000 shares authorized; shares issued and outstanding. .$1,850,000 Additional paid-in capital In excess of par. 165,000 Total paid-in capital... 2,015,000 Retained earnings.. 750,000 Total paid-in capital and retained earnings. 2,765,000 270,000 Less: Treasury stock (18,000 shares). Total stockholders' equity... $2,495,000 Instructions Complete the following statements and show your computations. a) The number of shares of common stock issued was b) The number of shares of common stock outstanding was The common stock was issued for a total of S d) The cost per share of the treasury stock was $ e) The average issue price of the common stock was S f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $.

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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**PROBLEM 2** The following items were shown on the balance sheet of Easton Corporation on December 31, 2018: ### Stockholders’ Equity **Paid-in Capital** **Capital Stock** - Common stock, $10 par value, 400,000 shares authorized; ______ shares issued and ______ outstanding ............................................................ $1,850,000 **Additional Paid-in Capital** - In excess of par ....................................................................................................................... 165,000 - Total paid-in capital ........................................................................................................ $2,015,000 **Retained Earnings** ........................................................................................................... 750,000 - Total paid-in capital and retained earnings .................................................................. 2,765,000 - Less: Treasury stock (18,000 shares) .............................................................................. 270,000 - Total stockholders’ equity ...................................................................................... $2,495,000 ### Instructions Complete the following statements and show your computations. a) The number of shares of common stock issued was __________________. b) The number of shares of common stock outstanding was ______________. c) The common stock was issued for a total of $________________. d) The cost per share of the treasury stock was $________________. e) The average issue price of the common stock was $________________. f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $________________. ### Diagrams This text includes information about stockholders' equity, paid-in capital, and retained earnings, along with calculations related to common stock issuance, treasury stock, and average issue prices. There are no graphs or diagrams included in the provided text. For educational purposes, the text can be broken down as follows: - **Stockholders' Equity**: The total value of the company's equity. - **Paid-in Capital**: The amount of capital "paid-in" by investors during common or preferred stock issuances, including the excess of par. - **Retained Earnings**: The accumulated portion of net income which is retained by the corporation rather than distributed to its owners as dividends. - **Treasury Stock**: The portion of shares that a company keeps in its own treasury. These shares do not have voting rights or pay dividends and are not included in shares outstanding calculations.
Transcribed Image Text:**PROBLEM 2** The following items were shown on the balance sheet of Easton Corporation on December 31, 2018: ### Stockholders’ Equity **Paid-in Capital** **Capital Stock** - Common stock, $10 par value, 400,000 shares authorized; ______ shares issued and ______ outstanding ............................................................ $1,850,000 **Additional Paid-in Capital** - In excess of par ....................................................................................................................... 165,000 - Total paid-in capital ........................................................................................................ $2,015,000 **Retained Earnings** ........................................................................................................... 750,000 - Total paid-in capital and retained earnings .................................................................. 2,765,000 - Less: Treasury stock (18,000 shares) .............................................................................. 270,000 - Total stockholders’ equity ...................................................................................... $2,495,000 ### Instructions Complete the following statements and show your computations. a) The number of shares of common stock issued was __________________. b) The number of shares of common stock outstanding was ______________. c) The common stock was issued for a total of $________________. d) The cost per share of the treasury stock was $________________. e) The average issue price of the common stock was $________________. f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $________________. ### Diagrams This text includes information about stockholders' equity, paid-in capital, and retained earnings, along with calculations related to common stock issuance, treasury stock, and average issue prices. There are no graphs or diagrams included in the provided text. For educational purposes, the text can be broken down as follows: - **Stockholders' Equity**: The total value of the company's equity. - **Paid-in Capital**: The amount of capital "paid-in" by investors during common or preferred stock issuances, including the excess of par. - **Retained Earnings**: The accumulated portion of net income which is retained by the corporation rather than distributed to its owners as dividends. - **Treasury Stock**: The portion of shares that a company keeps in its own treasury. These shares do not have voting rights or pay dividends and are not included in shares outstanding calculations.
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