At December 31, 2014, the records of NCIS Corporation provided the following sel
ID: 2459539 • Letter: A
Question
At December 31, 2014, the records of NCIS Corporation provided the following selected and incomplete data: Common stock (par $10; no changes during the year). Shares authorized, 370,000. Shares issued, ? ; issue price $17 per share; cash collected in full, $2,210,000. Shares held as treasury stock, 4,000 shares, cost $16 per share. Net income, $259,560. Dividends declared and paid, $148,680. Retained earnings balance, January 1, 2014, $725,000. The treasury stock was acquired after a stock split was issued. Required: 1. Complete the following tabulation: 2. Calculate the balance in the capital in excess of par? 3. Calculate the earnings per share? (Round your answer to 2 decimal places.) 4. Calculate the dividend paid per share of common stock? (Round your answer to 2 decimal places.) 5. Under what section should treasury stock be reported on the balance sheet? Also at what amount should it be shown? 6. Assume that the board of directors voted a 100 percent stock split (the number of shares will double). After the stock split, calculate the par value per share and the number of outstanding shares?
Explanation / Answer
2) Total Cash Collected : 2210000
Share issue price : $ 17
Paid up and issued Capital = (2210000/17) = 130000
1) Issue price of shares 17 par value of shares 10 Share premium 7 No of shares issued 130000 Total Share premium 910000 2) Earning available to shareholders 259560 No of shares issued 130000 EPS 2.00 3) Dividend declared 148680 No of shares issued 130000 DPS 1.14 4) As per Indian laws, treasury stock is kept as Asset under Investment Column and it is shown at its Cost of acquisition (see working Notes) 5) If Board recommends 100% stock split, then:- Shares outstanding 260000 Total Capital 1300000 par Value of share 5 Working Notes :-Related Questions
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