Chapter 11, Problem 3CP

Finding Missing Amounts

At December 31, the records of Nortech Corporation provided the following selected and incomplete data:

Common stock (par $1; no changes during the current year).

Shares authorized, 500,000.

Shares issued,  ? : issue price $22 per share.

Common Stock account, $200,000.

Shares held as treasury stock, 3,000 shares, cost $20 per share.

Net income for the current year, $147,750.

Dividends declared and paid during the current year, $49,250.

Retained Earnings balance, beginning of year, $155,000.

Required:

1. 1. Complete the following:

   Shares authorized _____.

   Shares issued _____.

   Shares outstanding _____.

   TIP: To determine the number of shares issued, divide the balance in the Common stock account by the par value per share.

2. 2. The balance in Additional Paid-in Capital would be $____.
3. 3. Earnings per share is $____.
4. 4. Dividends paid per share of common stock is $____.
5. 5. Treasury stock should be reported in the stockholders’ equity section of the balance sheet in the amount of $_____.
6. 6. Assume that the board of directors approved a 2-for-1 stock split. After the stock split, the par value per share will be $____.