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Cyber Systems, Inc. reported the following shareholders' equity: Shareholders' equity: Preferred shares, $2.00 Authorized-1,000,000 shares Issued 150,000 shares $3,750,000 Common shares Authorized- 5,000,000 shares Issued

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Cyber Systems, Inc. reported the following shareholders' equity: Shareholders' equity: Preferred shares, $2.00 Authorized-1,000,000 shares Issued 150,000 shares $3,750,000 Common shares Authorized- 5,000,000 shares Issued 800,000 shares 6,800,000 Retained earnings Total shareholders' equity $17.405,180 Required: What was the average issue price per share of the common shares? 1. 2. What was the average issue price per share of the preferred shares? 3. Assume that net income for the year was $825,000 and that issued shares of both common and preferred shares remained constant during the year. Journalize the entry to close net income to Retained Earnings. What was the amount of earnings per share? 4. Journalize the issuance of 10,000 additional common shares at $22.50 per share. Use the same account titles as shown in the problem. 5. How many common shares are outstanding after the 10,000 additional shares have been sold? T0 10,000 Badlunal shares have been sold? 6. How many common shares would be outstanding after the corporation split its common shares 2 for 1? What is the new average issue price? 7. Journalize the declaration of a stock dividend when the market price of the common shares is $22.50 per share. Consider each of the following stock dividends independently Cyber Systems, Inc., declares a 10% common stock dividend on shares outstanding after the 2- a. for-l split. issue price per common share after the distribution of the stock dividend 8. Journalize the following common shares transactions in the order given: a. Cyber Systems, Inc., repurchases 2,500 of its common shares at $25 per share. (HINT: Need new average issue price from 7.b) b. One month later, the corporation sells 1,000 of its common shares for $27 per share. c. An additional 1,000 of its common shares are sold for $22 per share. 9. Prepare an updated (after considering all the above) Statement of Shareholders' Equity and Statement of Retained Earnings for Cyber Systems, Inc. (HINT: Use T-accounts to show your work/calculations for preferred shares, common shares, retained earnings and number of common shares)

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