Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 11, Problem 3PA
Finding Missing Amounts
At December 31, the records of Kozmetsky Corporation provided the following selected and incomplete data:
Common stock (par $2; no changes during the current year).
Shares authorized, 5,000,000.
Shares issued, ? ; issue price $8 per share.
Shares held as
Net income for the current year, $481,000.
Common Stock account, $150,000.
Dividends declared and paid during the current year, $2 per share.
Retained Earnings balance, beginning of year, $800,000.
Required:
- 1. Complete the following:
Shares issued ____.
Shares outstanding _______.
- 2. The balance in Additional Paid-in Capital would be $ _____.
- 3. Earnings per share is $ ____. Round your answer to two decimal places.
- 4. Total dividends paid on common stock during the current year 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-l stock split. After the stock split, the par value per share will be $ _____.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
At December 31, the records of Kozmetsky Corporation provided the following selected and incomplete data:
Common stock (par $2; no changes during the current year).
Shares authorized, 5,000,000.
Shares issued, ? issue price $9 per share.
Shares held as treasury stock, 11,600 shares, cost $7 per share..
Net income for the current year, $410,720.
Common Stock account, $144,000.
Dividends declared and paid during the current year, $2 per share.
Retained Earnings balance, beginning of year, $740,000.
Required:
Complete the following: (Round "Earnings per share" to 2 decimal places.)
1-a. Shares issued
1-b. Shares outstanding
2. The balance in Additional Paid-in Capital would be
3. Earnings per share is
4. Total dividends paid on common stock during the current year 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…
At December 31, the records of Kozmetsky Corporation provided the following selected and incomplete data:Â
Common stock (par $2; no changes during the current year).Shares authorized, 5,000,000.Shares issued,   ?  ; issue price $7 per share.Shares held as treasury stock, 10,500 shares, cost $5 per share.Net income for the current year, $529,300.Common Stock account, $155,000.Dividends declared and paid during the current year, $2 per share.Retained Earnings balance, beginning of year, $850,000.
Â
Required:
Complete the following:Â (Round "Earnings per share" to 2 decimal places.)
At December 31, the records of Seacrest Enterprises provided the following selected and incomplete data:
Common stock (par $1; no changes during the current year).
Shares authorized, 10,000,000.
Shares issued, ?; issue price $11 per share.
Shares held as treasury stock, 57,000 shares, cost $12 per share.
Net income for the current year, $2,060,100
Common Stock account, $820,000.
Dividends declared and paid during the current year, $1 per share.
Retained Earnings balance, beginning of year, $37,100,000.
Required:
Complete the following: (Round per share to 2 decimal places.)
1-a. Shares issued
1-b. Shares outstanding
2. The balance in Additional Paid-in Capital would be
3. Earnings per share is
4. Total dividends paid on common stock during the current year is
5. Treasury stock should be reported in the stockholders' equity section of the balance sheet in the amount of
Chapter 11 Solutions
Fundamentals Of Financial Accounting
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Explain each of the following terms: (a)...Ch. 11 - What are the differences between common stock and...Ch. 11 - What is the distinction between par value and...Ch. 11 - What are the usual characteristics of preferred...Ch. 11 - What items are included in Accumulated Other...Ch. 11 - What is treasury stock? Why do corporations...Ch. 11 - How is treasury stock reported on the balance...
Ch. 11 - What are the two financial requirements to support...Ch. 11 - What is the difference between cumulative and...Ch. 11 - What is a stock dividend? How does a stock...Ch. 11 - What are the primary reasons for issuing a stock...Ch. 11 - Your company has been very profitable and expects...Ch. 11 - Identify and explain four important dates with...Ch. 11 - Prob. 17QCh. 11 - How do stock repurchases affect the EPS and ROE...Ch. 11 - What is one interpretation of a high P/E ratio?Ch. 11 - Prob. 20QCh. 11 - Which feature is not applicable to common stock...Ch. 11 - Which statement regarding treasury stock is false?...Ch. 11 - Which of the following statements about stock...Ch. 11 - Which of the following is ordered from the largest...Ch. 11 - Prob. 5MCCh. 11 - A journal entry is not recorded on what date? a....Ch. 11 - Prob. 7MCCh. 11 - Prob. 8MCCh. 11 - Prob. 9MCCh. 11 - Prob. 10MCCh. 11 - Equity versus Debt Financing Indicate whether each...Ch. 11 - Computing the Number of Issued Shares Face 2 Face...Ch. 11 - Computing the Number of Unissued Shares The...Ch. 11 - Analyzing and Recording the Issuance of Common...Ch. 11 - Analyzing and Recording the Issuance of No-Par...Ch. 11 - Determining the Effects of Stock Issuance and...Ch. 11 - Determining the Amount of a Dividend Netpass...Ch. 11 - Recording Dividends On May 20, the board of...Ch. 11 - Determining the Impact of a Stock Dividend Sturdy...Ch. 11 - Determining the Impact of a Stock Split Complete...Ch. 11 - Determining the Amount of a Preferred Dividend...Ch. 11 - Determining the Amount of a Preferred Dividend...Ch. 11 - Calculating and Interpreting Earnings per Share...Ch. 11 - Inferring Financial Information Using the P/E...Ch. 11 - (Supplement 11A) Comparing Owner's Equity to...Ch. 11 - (Supplement 11B) Recording a Stock Dividend To...Ch. 11 - Computing Shares Outstanding The 2016 annual...Ch. 11 - Reporting Stockholders' Equity and Determining...Ch. 11 - Preparing the Stockholders' Equity Section of the...Ch. 11 - Reporting the Stockholders' Equity Section of the...Ch. 11 - Determining the Effects of the Issuance of Common...Ch. 11 - Recording and Reporting Stockholders' Equity...Ch. 11 - Finding Amounts Missing from the Stockholders'...Ch. 11 - Recording Treasury Stock Transactions and...Ch. 11 - Prob. 9ECh. 11 - Computing Dividends on Preferred Stock and...Ch. 11 - Recording Dividends and Preparing a Statement of...Ch. 11 - Analyzing Stock Dividends On December 31, the...Ch. 11 - Prob. 13ECh. 11 - Comparing 100 percent Stock Dividend and 2-for-1...Ch. 11 - Journalizing Cash Dividends Bogscraft Company has...Ch. 11 - Preparing a Statement of Retained Earnings and...Ch. 11 - Determining the Effect of a Stock Repurchase on...Ch. 11 - (Supplement 11 A) Comparing Stockholders' Equity...Ch. 11 - Prob. 19ECh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Recording Stock Dividends Activision Blizzard,...Ch. 11 - Finding Missing Amounts At December 31, the...Ch. 11 - Prob. 4CPCh. 11 - Prob. 5CPCh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Recording Cash Dividends National Chocolate Corp....Ch. 11 - Finding Missing Amounts At December 31, the...Ch. 11 - Calculating Common and Preferred Cash Dividends...Ch. 11 - Prob. 5PACh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Prob. 2PBCh. 11 - Prob. 3PBCh. 11 - Prob. 4PBCh. 11 - Prob. 5PBCh. 11 - Financial Reporting of Depreciation, Write-off,...Ch. 11 - Prob. 2COPCh. 11 - Prob. 1SDCCh. 11 - Prob. 2SDCCh. 11 - Prob. 4SDCCh. 11 - Prob. 5SDCCh. 11 - Critical Thinking: Making a Decision asan Investor...Ch. 11 - CC11 Accounting for Equity Financing Nicole has...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?arrow_forwardErrol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?arrow_forwardGiven the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.arrow_forward
- Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.arrow_forwardAt December 31, the records of Nortech Corporation provided the following selected and incomplete data: Common stock (par $1; no changes during the current year). Shares authorized, 500,000. Shares issued, 2; issue price $15 per share. Common Stock account, $130,000. Shares held as treasury stock, 2,300 shares, cost $13 per share. Net income for the current year. $51,080. Dividends declared and paid during the current year, $22,986. Retained Earnings balance, beginning of the year, $148,000. Required: Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share. (Round "per share" answers to 2 decimal places.) 1-a. Shares authorized 1-b. Shares issued 1-c. Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is 4. Dividends paid per share of common stock is 5. Treasury stock should be reported in the stockholders' equity section of the balance sheet in the…arrow_forwardAt December 31, the records of Kozmetsky Corporation provided the following selected and incomplete Common stock (par $2; no changes during the current year). Shares authorized, 5,000,000. Shares issued, ?; issue price $8 per share. Shares held as treasury stock, 10,300 shares, cost $6 per share. Net income for the current year, $509,740. Common Stock account, $153,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $830,000. Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 1-a. Shares issued 1-b. Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is 4. Total dividends paid on common stock during the current year 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…arrow_forward
- At December 31, the records of Nortech Corporation provided the following selected and incomplete data: Common stock (par $1; no changes during the current year). Shares authorized, 500,000. Shares issued, 2; issue price $15 per share. Common Stock account, $130,000. Shares held as treasury stock, 2,300 shares, cost $13 per share. Net income for the current year, $51,080. Dividends declared and paid during the current year, $22,986. Retained Earnings balance, beginning of the year, $148,000. Required: Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share. (Round "per share answers to 2 decimal places.) 1-a. Shares authorized 1-b. Shares issued 1-c. Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is 4. Dividends paid per share of common stock is 5. Treasury stock should be reported in the stockholders' equity section of the balance sheet in the amount…arrow_forwardAt the end of the year, the records of NCIS Corporation provided the following selected and incomplete data:  Common stock ($10 par value); no changes in account during the year. Shares authorized: 220,000. Shares issued: _______ (all shares were issued at $20 per share; $2,120,000 total cash collected). Treasury stock: 2,000 shares (repurchased at $24 per share). The treasury stock was acquired after a stock split was announced. Net income: $198,640. Dividends declared and paid: $107,120. Retained earnings beginning balance: $575,000. Required: 5. In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported? 6. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, what will be the par value per share? How many shares will be outstanding?arrow_forwardAt the end of the year, the records of NCIS Corporation provided the following selected and incomplete data:  Common stock ($10 par value); no changes in account during the year. Shares authorized: 220,000. Shares issued: _______ (all shares were issued at $20 per share; $2,120,000 total cash collected). Treasury stock: 2,000 shares (repurchased at $24 per share). The treasury stock was acquired after a stock split was announced. Net income: $198,640. Dividends declared and paid: $107,120. Retained earnings beginning balance: $575,000. Required: 1. Complete the following tabulation: 2. Calculate the balance in the Additional paid-in capital account. 3. What is earnings per share (EPS)? 4. What was the dividend paid per share? 5. In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported? 6. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, what will be the par value per…arrow_forward
- During its first year of operations, Ayayai Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 68,000 shares for cash at $6 per share. July 1 Issued 42,000 shares for cash at $10 per share. (a) (b) Your answer is partially correct. Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Jan. 10 July 1 v Account Titles and Explanation Debit Creditarrow_forwardAyayai Corp. has these accounts at December 31: Common Stock, $10 par, 4,500 shares issued, $45,000; Paid-in Capital in Excess of Par $20,250; Retained Earnings $43,000; and Treasury Stock, 400 shares, $8,800. Prepare the stockholders' equity section of the balance sheet. (Enter account name only and do not provide descriptive information.) Ayayai Corp. Balance Sheet (Partial) SAarrow_forwardMcVie Corporation's stock has a par value of $2. The company has the following transactions during the year: Feb. Issued 280,000 shares at $5 share. 28 Jun. 7 Issued 94,000 shares in exchange for equipment with a clearly determined value of $205,000. Sep. Purchased 2,400 shares of treasury stock at $7 per share. 19 Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Feb. 28 Jun. 7 Sep. 19 Additional Paid-in Capital from Common Stock Building Cash Land Treasury Stock III III II III III IIarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Stockholders Equity: How to Calculate?; Author: Accounting University;https://www.youtube.com/watch?v=2jZk1T5GIlw;License: Standard Youtube License