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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Common stock—calculate issue price and dividend amount The balance sheet caption for common stock is the following:
Common stock without par value, 2,000,000 shares authorized, |
|
400,000 shares issued, and 360,000 shares outstanding | $2,600,000 |
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 $0.60 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?
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Step 1 of 5
Common stock-Computation-Issue price-Dividend paid
By extracting the information:
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