At December 31, 2009, the records of Nortech Corporation provided the following selected and incomplete data: Common

Question:

At December 31, 2009, the records of Nortech Corporation provided the following selected and incomplete data:

Common stock (par $10; no changes during the year)

Shares authorized, 200,000.

Shares issued, __________? __________; issue price $17 per share; cash collected in full, $2,125,000.

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

Net income, $118,000.

Dividends declared and paid, $73,200.

Retained earnings balance, January 1, 2009, $555,000.

The treasury stock was acquired after a stock split was issued.

Required:

1. Complete the following tabulation:

Shares authorized __________.

Shares issued __________.

Shares outstanding __________.

2. The balance in the Capital in excess of Par account appears to be $ __________.

3. Earnings Per Share is $__________.

4. Dividend paid per share of common stock is $__________.

5. Treasury stock should be reported on the balance sheet under the major caption __________ in the amount of $ __________.

6. Assume that the board of directors voted a 2 for 1 stock split (the number of shares will double). After the stock split, the par value per share will be $__________, and the number of outstanding shares will be__________.

7. Assuming the stock split mentioned above, give any journal entry that should be made. If none, explain why.

8. Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared and issued when the market price of the common stock was $21. Give any journal entry that should be made.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...