Finding Missing Amounts
At December 31, 2009, the records of Kozmetsky Corporation provided the following selected and incomplete data:
Common stock (par $1; no changes during 2009).
Shares authorized, 5,000,000.
Shares issued, ? ; issue price $80 per share.
Shares held as treasury stock, 100,000 shares, cost $60 per share (no changes during 2009).
Net income for 2009, $4,800,000.
Common Stock account, $1,500,000.
Dividends declared and paid during 2009, $2 per share.
Retained Earnings balance, January 1, 2009, $82,900,000.
Required:
1. Complete the following:
Shares issued .
Shares outstanding .
2. The balance in the Additional Paid-In Capital account would be $ .
3. Earnings per share is $ .
4. Total dividends paid on common stock during 2009 is $ .
5. Treasury stock should be reported in the Stockholders’ Equity section of the balance sheet in the
amount of $ ____.
6. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value
per share will be $ , and the number of outstanding shares will be . The treasury
stock was acquired after the split was issued.
7. Disregard the stock split (assumed above). Assume instead a 100 percent stock dividend was
declared and issued after the treasury stock was acquired, when the market price of the common
stock was $21. Explain how stockholders’ equity will change.
At December 31, 2009, the records of Kozmetsky Corporation provided the following selected and incomplete data:
Common stock (par $1; no changes during 2009).
Shares authorized, 5,000,000.
Shares issued, ? ; issue price $80 per share.
Shares held as treasury stock, 100,000 shares, cost $60 per share (no changes during 2009).
Net income for 2009, $4,800,000.
Common Stock account, $1,500,000.
Dividends declared and paid during 2009, $2 per share.
Retained Earnings balance, January 1, 2009, $82,900,000.
Required:
1. Complete the following:
Shares issued .
Shares outstanding .
2. The balance in the Additional Paid-In Capital account would be $ .
3. Earnings per share is $ .
4. Total dividends paid on common stock during 2009 is $ .
5. Treasury stock should be reported in the Stockholders’ Equity section of the balance sheet in the
amount of $ ____.
6. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value
per share will be $ , and the number of outstanding shares will be . The treasury
stock was acquired after the split was issued.
7. Disregard the stock split (assumed above). Assume instead a 100 percent stock dividend was
declared and issued after the treasury stock was acquired, when the market price of the common
stock was $21. Explain how stockholders’ equity will change.