Financial Accounting question about common stock, shares authorized and shares issued.

Question

I could really use some help for this, I do not understand and can not find the answer at all. Thank you!

Common stock (par $1; no changes during the current year).

Shares authorized, 500,000.

Shares issued, ?; issue price $24 per share.

Common Stock account, $220,000.

Shares held as treasury stock, 3,200 shares, cost $22 per share.

Net income for the current year, $184,280.

Dividends declared and paid during the current year, $58,536.

Retained Earnings balance, beginning of the year, $157,000.

 

Required:Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share.

1-a. Shares authorized: ___

1-b. Shares Issued: ___

1-c. Shares outstanding: ___

2 The balance in Additional Paid in Capital would be: ___

3 Earnings per share is: ___

4 Dividends paid per share of common stock is: ___

5 Treasury stock should be reported in the stockholders equity section of the balance sheet in the amount of: ___

6 Assume that the board of directors approved a 2-for-1 stock split. After the stock split, the par value per share will be: ___

Answer 1

1a: shares authorized 500,000 Given

1b:Shares issued: 220,000 Common stock account / par value

1c: Shares O/S 216,800 Shares issued - Treasury stock

2: Balance in PIC 5,060,000 Shares issued * (Issue price - par) 220,000*(24-1)

3: EPS .85 Earnings/shares O/S 184,280/216,800

4: Div/share .27 Div paid/shares O/S 58,536/216,800

5: TReasury stock reported as 70,400 Shares * purchase price 3200*22

6: Par value after split .50 Number of stocks double, par value decreases

by 50%. Common stock account remains the s same same at 220,000 but shares double