At the end of the year, the records of NCIS Corporation provided the following s

Question

At the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock (par $10); no changes in account during the year. Shares authorized, 260,000 Shares issued: Treasury stock: 6,000 shares (repurchased at $15 per share). The treasury stock was acquired after a stock split was announced Net income, $265,200. Dividends declared and paid: $145,520 Retained earnings beginning balance: $615,000. (all shares were issued at $15 per share. Total cash collected: $2,130,000 Required: 1. Complete the following tabulation: Shares authorized Shares issued Shares outstanding 2. What is the balance in the Additional Paid-in Capital account. Additional paid-in capital 3. What is earnings per share (EPS). (Round your answer to 2 decimal places.) arnings per share 4. What was the dividend paid per share. (Round your answer to 2 decimal places.) Dividend per share 5 Under what section should treasury stock be renorted on the halance sheet? Also at what amount should it be shown?

Explanation / Answer

1 Shares Authorised        2,60,000 Shares issued        1,42,000 (2130000/15) includes premium 5 Shares Outstanding        1,36,000 (142000-6000) exclude treasury stock 2 Additional Paid in Capital        7,10,000 (142000*5) Premium 5 3 Earnings Per share                 1.95 (265200/136000) (Net income/Shares outstanding) 4 Dividend paid per Share                 1.07 (145520/136000) (Dividend/Shares outstanding) 5 Under the cost method of recording treasury stock, the cost of treasury stock is reported at the end of the Stockholders' Equity section of the balance sheet. Treasury stock will be a deduction from the amounts in Stockholders' Equity. Trasury Stock in the problem at Cost=        90,000 (6000*15)

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