At December 31, 2013, the records of Kozmetsky Corporation provided the followin

Question

At December 31, 2013, the records of Kozmetsky Corporation provided the following selected and incomplete data:

At December 31, 2013, the records of Kozmetsky Corporation provided the following selected and incomplete data:

Complete the following: (Round "Earnings per share" to 2 decimal places.) Shares issued Shares outstanding The balance in Additional Paid-in Capital would be Earnings per share is Total dividends paid on common stock during 2013 is Treasury stock should be reported in the stockholders' equity section of the balance sheet in the amount of Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value per share will be Disregard the stock split (assumed above). Assume instead that a 100 percent stock dividend was declared and issued after the treasury stock had been acquired, when the market price of the common stock was $10. Show how stockholders' equity will change. (Select "NE" if there is no effect.) Stockholders' equity Retained earnings Common stock

Explanation / Answer

1a.Shares issued .
Common stock account $1,410,000. / $1 par value = 1,410,000 issued

1b.Shares outstanding .
1,410,000 issued - 105,000 Treasury Stock = 1,305,000 outstanding

2. The balance in the Additional paid-in capital account would be $ .
$80 per share. - $1 par value = $79 per share additional paid-in capital
$79 per share additional paid-in capital x 1,410,000 issued = $111,390,000

3. Earnings per share is $ .
Net income for 2010, $3,993,300. / 1,305,000 outstanding = $3.06 per share

4. Total dividends paid on common stock during 2010 is $ .
Dividends declared and paid during 2010, $2 per share. x 1,305,000 outstanding = $2,610,000

5. Treasury stock should be reported in the stockholders' equity section of the balance sheet in the amount of $ .
105,000 shares, x cost $60 per share. = $6,300,000

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 $
$1 par value / 2 = $0.50 par value per share

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