Problem 8.32 LO 1.2, 3.4, 6, 7 Comprehensive P roblem calculate missing amounts, issue price, net income, and dividends interpret stock dividend and split Bacon, Inc has the following stockholders equity section in its May 3l.2016, comparative balance sheets Prelamud stock, s120 par value, 0% cumulate 50,000 sharee authoriad,35.000 shares issued $4.200000 Common stock S5 par value, 250,000 shares authoruud, 150.000 and 136 000 sharus Additional paid-incapbal Laos: Taasury common stock at coot 18.000 sharea and 17000 shares respect uly 18300000 stockholders oquy Required 1. Calculate amount that should be shown the balance shect for common stock at May 31.2016. 2. The only transaction affecting additional Paid in capital during the month ofMay was the sale of additional comamon stock. At what price per share were the additional sharessold? 3. What was the average cost per share of the common stock purchased sorthe treasury during the month? 4. During May dividends on preferred stock equal to onehalf of the 2016 dividend requirement were declared and paid. There were no common dividends declared or paid in May. Calculat e net income for May. 3. Assume that on June 1 the board of directors declared a cash dividend of$0.30 per share on the outstanding shares ofcommon stock, The dividend will be payable on July 15 to stockholders of record on June 15. Calculate the lotal amount of the dividend 2. Explain the impactthis action will Mave on the Mure balance sheet and on the income statement for June. Assume that on Junelthe market value of the common stock was S66 per share and that the board of directors declared a 5% stock dividend on the issued shares of common stock. Use the horizontal model (or write the entry) to show the issuance ofthe stock dividend. 7. Assume that instead ofthe sock dividend described in f the boardof directors authorized a 2-for-1 stock split on June l when the marketprice of the common stock was S66 per share. 1. What will the par value, and bow many shares of common stockwill authorized aRer