At the end of the year, the records of NCIS Corporation provided the following s
ID: 2528928 • Letter: A
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, 350,000. Shares issued: Treasury stock: 6,000 shares (repurchased at $16 per share) The treasury stock was acquired after a stock split was announced. Net income, S212,160 Dividends declared and paid: $120,640. Retained earnings beginning balance: S705,000 (all shares were issued at S20 per share. Total cash collected: $2,200,000. Required: 1. Complete the following tabulation: Shares authorized Shares 2. What is the balance in the Additional Paid-in Capital acoount. 3. What is earnings per share (EPS). (Round your answer to 2 decimal places.) arnings per 4. What was the dividend paid per share. (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?Explanation / Answer
1. Shares authorised = 3,50,000
Shares issue = (22,00,000/20) = 1,10,000
Outstanding shares = 1,10,000 - 6,000 = 1,04,000
2. Additional paid in capital = (20-10)*104000 = 10,40,000
3. EPS = Net income / No. of Outstanding shares
= 212160/104000
2.04
4. DPS = Total dividend declared / No of outstanding shares
= 120640/104000
=1.16.
5. Treasury stock is reprted at the end of Stockholder's Equity section. It is reported at cost i.e $ 16 in case of Cost method and at par i.e. $10 in case of Par method.
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