Chapter 10, Problem 10.96CEP

(Learning Objectives 2, 3, 4, 6: Analyze information from stockholders’ equity) The stockholders' equity of Bowling Green Uniforms as of December 31, 2018 and 2017, follows:

		2018	2017
Common stock, 1,700,000 shares authorized, 850,000 and 650,000 shares issued, respectively	$ 340,000		$ 260,000
Paid-in capital in excess of par	34,170,000		26,470,000
Paid-in capital-treasury stock transactions	57,000		56,000
Retained earnings	71,087,500		60,000,000
Treasury stock, at cost, 50,000 and 55,000 shares, respectively	(2,293,000)		2,519,000)
Total stockholders’ equity	$103,364,500		$84,267,000

Requirements

1. 1. What is the par value of the common stock?
2. 2. How many shares of common stock were outstanding at the end of 2018?
3. 3. As of December 31, 2018, what was the average price that stockholders paid for all common stock when issued?
4. 4. Prepare a summary journal entry to record the change in common stock during the year.
5. 5. What was the average price that stockholders paid for the common stock issued in 2018?
6. 6. What was the average price paid by Bowling Green Uniforms for the treasury stock at December 31, 2018?
7. 7. Prepare a summary journal entry to record the change in treasury stock during the year.
8. 8. Assuming net income for 2018 was $13,000,000, prepare a summary journal entry to record the dividends declared during 2018.