1 0 casha capitaltreasurystockse

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: treasury stock, the book value of outstanding shares was $21.53 per share ($1,830,000 ÷ 85,000 shares outstanding). Thus, repurchasing the treasury stock decreased book value per share by $0.03. P12–11 a. Number of Shares Issued = Change in Total Par Value ÷ Par Value per Share = ($110,000 – $70,000) ÷ $10 per Share = 4,000 Shares b. Average Issue Price c. Ending Retained Earnings = $975,000 Dividends declared = = = Cash Received ÷ Number of Shares Issued = [Change in Total Par Value + Change in Additional Paid­In Capital, Common Stock] ÷ 4,000 Shares [from part (a)] = [($110,000 – $70,000) + ($625,000 – $500,000)] ÷ 4,000 Shares = $41.25 per Share Beginning Retained Earnings + Net Income – Dividends Declared – Treasury Stock Adjustments $250,000 + $2,000,000 – Dividends Declared – 0* $1,275,000 * Since Additional Paid­in Capital, Treasury Stock increased during 2011, we know that, on average, Tracey Corporation reissued the treasury stock for more than what it paid for the stock. Since Retained Earnings is adjus...
View Full Document

Ask a homework question - tutors are online