At December 31, 2014, the records of Nortech Corporation provided the following selected and incomplete data:
Common shares, no par value
Shares authorized, 200,000
Shares issued, ? ; issue price $ 17 per share; cash collected in full, $ 2,125,000
Net earnings for 2014, $ 118,000
Dividends declared and paid during 2014, $ 75,000
Prior-period error, correction of 2013 accounting error, $ 9,000 (a credit, net of income tax)
Retained earnings balance, January 1, 2014, $ 155,000
Required:
1. Complete the following tabulation:
Shares authorized, __________ .
Shares issued, __________ .
Shares outstanding, __________ .
2. EPS, $ __________ .
3. Dividend paid per common share, $ __________ .
4. The prior- period error should be reported on the __________ as an addition to __________ (or a deduction from __________ ).
5. The amount of retained earnings available for dividends on January 1, 2014, was $ __________ .
6. Assume that the board of directors voted a 100 percent stock split ( the number of shares will double). After the stock split, the average issue price per share will be $ __________ and the number of outstanding shares will be __________ .
7. Assume that the company declared a 100 percent stock dividend instead of the 100 percent stock split. Compare and contrast the stock dividend and the stock split with regard to their effects on shareholders’ equity components.