Tracey corporation reports the following reports the following in its December 31, 2011, financial report:

Required:
a. Compute the number of shares of common st4xk issued during 2011.
b. Compute the average market price of the common shares issued during 2011.
c. Assume that Tracey Corporation earned net income of $2 million during 2011. Compute the amount of dividends that were declared during 2011.
d. If Tracey Corporation did not declare or pay any dividends during 2010, and again assuming a net income during 2011 of $2 million, compute the amount declared as dividends to common stockholders during 2011.
e. Prepare the entry that would have been necessary on March 3. 2009, to record the purchase of the treasury stock.
f. Assume that all shares of treasury stock reissued during 2011 were reissued at the same time and at the same price. Prepare the entry to record the re-issuance of the treasury stock.
g. At what per-share price was the treasury stock reissued?

Transcribed Image Text:

2010 2011 Cumulative preferred stock (10%, S100 par value) Common stock ($10 par value, 11,000 shares authorized, issued, and outstanding) Additional paid-in capital: Common stock S 400,000 S 400,000 110,000 70,000 500,000 55,000 250,000 (105,000) 625,000 124,000 Treasury stock Retained earnings Less: Treasury stock Total shareholders' equity 975,000 (84,000) 52,150,000 $1,170,000