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At the end of the year, the records of Kwan Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes
At the end of the year, the records of Kwan Corporation provided the following selected and incomplete data:
Common stock ($10 par value); no changes in account during the year.
Shares authorized: 220,000.
Shares issued: __________blank (all shares were issued at $20 per share; $2,120,000 total cash collected).
Treasury stock: 2,000 shares (repurchased at $24 per share).
The treasury stock was acquired after a stock split was announced.
Net income: $198,640.
Dividends declared and paid: $107,120.
Retained earnings beginning balance: $575,000.
Required:
- Determine the following tabulation: a. The number of authorized shares. b. The number of issued shares. c. The number of outstanding shares.
- Calculate the balance in the Additional paid-in capital account.
- What is earnings per share (EPS)?
- What was the dividend paid per share?
- In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported?
- Assume that the board of directors voted a 2-for-1 stock split. After the stock split, what will be the par value per share? How many shares will be outstanding?
- Assuming the stock split mentioned above, prepare any journal entry that should be made.
- Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared before any treasury stock was acquired. The market price of the common stock at the time the dividend was declared was $25. Prepare any journal entry that should be made.
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