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At December 31 the records of Kozmetsky Corporation provided the following selected and incomplete data:   Common...

At December 31 the records of Kozmetsky Corporation provided the following selected and incomplete data:
  Common stock (par $2; no changes during the current year).
  Shares authorized, 5,000,000.
  Shares issued,   ? ; issue price $7 per share.
  Shares held as treasury stock, 11,100 shares, cost $5 per share.
  Net income for the current year, $462,820.
  Common Stock account, $149,000.
  Dividends declared and paid during the current year, $2 per share.

  Retained Earnings balance, beginning of year, $790,000.

1. shares issued:

shares outstanding:

2. the balance in additional paid-in capital would be:

3. earning per share is:

4. total dividends paid on common stock during the current year 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 voted a 2 for 1stock split, the par value per share will be:
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Answer #1

the following are the answers along with workings:

1 shares issued = common stock account / par value per share = ($149,000 / $2) 74,500 shares
shares outstanding = (shares issued - treasury stock) => (74,500 - 11,100) 63,400 shares
2 balance in additional paid in capital (number of shares issued * (sale price - par value) => (74,500 * ($7-$2)) 372,500
3.earnings per share = (net income / shares outstanding)=> (462,820/ 63,400) $7.30
4.total dividends paid = (dividend per share * shares outstanding)=> ($2 * 63,400) $126,800
5.treasury stock to be reported (treasury stock shares * cost per share)=> (11,100 * $5) $55,500
6.par value after 2 for 1 stock split = (existing par value * 1/2) => ($2*1/2) $1
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