Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At the end of the year, the records of Nortech Corporation provided the following selected and incomplete data: Common shares, no par value Shares authorized,
At the end of the year, the records of Nortech Corporation provided the following selected and incomplete data: Common shares, no par value Shares authorized, 286,500 Shares issued,_? _;issue price $15 per share; cash collected in full Net earnings Dividends declared and paid Prior-period error, correction of an accounting error (a credit, net of income tax) Retained earnings, beginning balance $ 2,805,000 152,500 87,000 7,900 155,000 Required: 1. Complete the following tabulation: Shares authorized Shares issued Shares outstanding 2. Calculate the amount of Earnings per share. (Round the final answer to 2 decimal places.) Earnings per share 3. Calculate the amount of Dividend paid per common share. (Round the final answer to 2 decimal places.) Dividend per common share 4. Complete the following. The prior-period error should be reported on the 5. Calculate the amount of retained earnings available for dividends at the beginning of the year. Retained earnings available for dividends Assume that the board of directors voted for a 100 percent stock split (the number of shares will double). 6-a. After the stock split, calculate the average issue price per share? (Round the final answer to 2 decimal places.) Average issue price 6-b. After the stock split, calculate the number of outstanding shares? Shares outstanding 7-a. Does issuing a 100% stock dividend instead of a 100% stock split have any effects on shareholders' equity components? Yes 7-b. Prepare the journal entry for the declaration of 100 percent stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for issuing 100% Stock dividend. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started