At December 31, 2011, the records of NCIS Corporation provided the following selected and incomplete data: Common
Question:
At December 31, 2011, the records of NCIS 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, 2011, $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 100 percent 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.
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Step by Step Answer:
1 Shares authorized given 200000 Shares issued 2125000 17 125000 Shares outstanding 125000 3000 122...View the full answer
