At December 31 the records of Kozmetsky Corporation provided the following selec

Question

At December 31 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 Pad-m Capital would be Earnings per share is Total dividends paid on common stock during the current year is Treasury stock should be reported m 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

Explanation / Answer

1

Shares Issued = (Common Stock Amount / Par Value per share )

= 156000 / 2 =

78000

Shares Outstanding = Shares Issued - Treasury Shares

= 78000 - 10600 =

67400

2

Calculation of Balance in Additional Paid in Capital:

Additional Paid in Capital for Issue of Common Stock

= 78000 Shares * ($8 - $2) =

468000

3

Calculation of Earnings Per share:

Formula :

Earnings Per share = (Net income - Preferred Dividend ) / Number of Common Shares outstanding

= $539200 / 67400

$       8.00

4

Calculation of Total Dividend Paid on Common Stock:

Shares outstanding

67400

Dividend Per share

$2

Total Dividend Paid on Common Stock = 67400 *2 =

$134,800

1

Shares Issued = (Common Stock Amount / Par Value per share )

= 156000 / 2 =

78000

Shares Outstanding = Shares Issued - Treasury Shares

= 78000 - 10600 =

67400

2

Calculation of Balance in Additional Paid in Capital:

Additional Paid in Capital for Issue of Common Stock

= 78000 Shares * ($8 - $2) =

468000

3

Calculation of Earnings Per share:

Formula :

Earnings Per share = (Net income - Preferred Dividend ) / Number of Common Shares outstanding

= $539200 / 67400

$       8.00

4

Calculation of Total Dividend Paid on Common Stock:

Shares outstanding

67400

Dividend Per share

$2

Total Dividend Paid on Common Stock = 67400 *2 =

$134,800

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