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Unformatted text preview: eferred stock.
b. Cash (+A) Capital, Common Stock (+SE) 120
Common Stock (+SE)
20 Issued common stock.
c. Cash (+A) Capital, Treasury Stock (+SE) 30
Treasury Stock (+SE)
10 Reissued treasury stock. E12–10
a. Issue Price per Share =
= *Total Par Value of
Common Stock ÷ Par Value
per Share = $10,000
b. $17.50 ÷ $5 = Purchase Price of Treasury Stock Number of Shares
= c. To acquire Timeco, Zielow issued 1,000* shares and the market price of Timeco at the time of acquisition
** d. $20/Share $5,000 c/s ÷ $5 P/V
$5,000 c/s + $23,000 AP/C Since the common stock accounts is always credited with total par value of shares issued to stock option
holders, the company issued 200 shares (i.e., $1,000 c/s ÷ $5 a share P/V).
The stock options were exercised at a price of $9* a share. Most certainly the market price of Zielow’s
shares would be more than $9 at that time.
* ($1,000 c/s + $800 AP/C) ÷ 200 shares. E12–10 Concluded
e. Per Share Dividend Rate = Total Divi...
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