Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 2022, the records of Zee Zee Corporation reported the following in its financial statements: Common Stock Par value per share Authorized Shares
On December 31, 2022, the records of Zee Zee Corporation reported the following in its financial statements: Common Stock Par value per share Authorized Shares IPO (2017) price per share Treasury stock (\# of shares) $1.005,000,000$21.00100,000 The company reported the following balances on its balance sheet at the end of the year: \begin{tabular}{|l|r|} \hline Common Stock & $1,500,000 \\ \hline Treasury Stock & (4,000,000) \\ \hline Retained Earnings & 18,200,900 \\ \hline \end{tabular} The company reported the following balances on its 2022 income statement: Net Income $4,284,000 The company had only one stock issue, its IPO in 2017. It has had no other issues. It bought back stock in 2021. Apart from that, it has had no other treasury transactions over its life. Answer the following questions: 1. How many shares did the company issue at its IPO? 2. How many shares are outstanding on 31Dec,2022 ? 3. What is the balance in its APIC account on 31Dec,2022 ? 4. What is its EPS for 2022? 5. Suppose the board approved the following dividend on 15 Apr 2023. $2.20 per share What journal entry should the company make that day? \begin{tabular}{|l|c|c|} \hline & DEBIT & CREDIT \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} 6. Suppose the company reissued shares from its treasury to employees who exercised options. Number of shares issued on exercise of options The strike price of the options - 20,000 What journal entry should the company make on that day? Assume all employees paid cash to exercise their options. Also, assume no taxes. \begin{tabular}{|l|c|c|} \hline & DEBIT & CREDIT \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} 7. What would be the balance in the following balance sheet accounts after all these transactions? Common Stock Additional Paid In capital Retained Earnings Treasury Stock
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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