354pershare 1600058000400020

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Unformatted text preview: eferred stock. b. Cash (+A) Capital, Common Stock (+SE) 120 Common Stock (+SE) 100 Additional Paid­In 20 Issued common stock. c. Cash (+A) Capital, Treasury Stock (+SE) 30 Treasury Stock (+SE) 20 Additional Paid­In 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 Issued 2,000 = = = c. To acquire Timeco, Zielow issued 1,000* shares and the market price of Timeco at the time of acquisition was $28,000.** * ** 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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