Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet caption for common stock is the following: Common stock without par value, 4,900,000 shares authorized, 800,000 shares issued, and 720,000 shares outstanding

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The balance sheet caption for common stock is the following: Common stock without par value, 4,900,000 shares authorized, 800,000 shares issued, and 720,000 shares outstanding $ 3,500,000 Required: a. Calculate the average price at which the shares were issued. b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. c. If a cash dividend of $0.20 per share were declared, calculate the total amount of cash that would be paid to stockholders. d. What accounts for the difference between issued shares and outstanding shares? Required A Required B Required C Required D Calculate the average price at which the shares were issued. (Round your answer to 2 decimal places.) Average issue price per share Required A Required B > Required A Required B Required C Required D If these shares had been assigned a stated value of $1 each, show how the caption here would be different. Common stock at stated value of $1 per share: 4,900,000 shares authorized, 800,000 issued and 720,000 shares outstanding Additional paid in capital Total paid in capital $ 0 Required A Required B Required C Required D If a cash dividend of $0.2 per share were declared, calculate the total amount of cash that would be paid to stockholders. Total cash dividend Required A Required B Required C Required D What accounts for the difference between issued shares and outstanding shares? Difference between issued shares and outstanding shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

More Books

Students also viewed these Accounting questions

Question

Why is mechanical weathering so important to chemical weathering?

Answered: 1 week ago

Question

=+What is Pats minimin choice?

Answered: 1 week ago