Question
The following information comes from a balance sheet at December 31, 2015: Common Stock, $1 par, 1,000,000 shares authorized $160,000 Paid-in Capital in Excess of
The following information comes from a balance sheet at December 31, 2015:
Common Stock, $1 par, 1,000,000 shares authorized | $160,000 |
Paid-in Capital in Excess of Par--Common Stock | 120,000 |
Total Capital Stock | 280,000 |
Retained Earnings | 80,000 |
Less: Treasury Stock (4,000 common shares at cost) | (40,000) |
Total Stockholders' Equity | $320,000 |
Answer the following questions: A) How many shares of common stock are issued? shares ____________ B) How many shares of common stock are outstanding? shares __________________ C) Assuming that all shares were sold at the same price, what was the original selling price per share? $ per share ______________________ D) If the company declares a 2-for-1 stock split on December 31, 2015, describe the resulting change, if any, in the balances in capital stock accounts and the par value of the common stock. ____________________________
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