The financial statements for Texas Media Corporation included the following selected information: Common Stock ... $1,600,000 Retained

Question:

The financial statements for Texas Media Corporation included the following selected information:

Common Stock ... $1,600,000

Retained earnings .. $900,000

Net income .... $1,000,000

Shares issued ..... 90,000

Shares outstanding .... 80,000

Dividends declared and paid $800,000

The common stock was sold at a price of $20 per share.

Required:

1. What is the amount of capital in excess of par?

2. What was the amount of retained earnings at the beginning of the year?

3. How many shares are in treasury stock?

4. Compute earnings per share.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...