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# B dateofdeclaration cashdividendse 3900000

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Unformatted text preview: dends Paid During 2012 Common Stock Outstanding = = \$1.354 per share * (\$16,000 ÷ \$5) – [(8,000 + 4,000) ÷ \$20] In this problem it is assumed that during the year 2012, treasury­stock was acquired at \$20 a share. E12–11 a. Issue Price per Share = = = *Number of Shares Issued ÷ Total Par Value of Common Stock = \$8,000 b. \$5 a share ÷ \$8,000 = Purchase Price of Treasury Stock Par Value per Share of C/S \$1 = = = c. \$12/Share Since \$3,000 worth of treasury stock was used to satisfy the stock options, at a price of \$12 a share, a total of 250 shares were issued through stock options. Since retained earnings is debited at \$2,750, it means that stock options were sold at par value or \$1 a share resulting in the following entry. Cash (+A) Retained Earnings (–SE) 250 2,750 Treasury Stock (+SE) 3,000 E12–11 Concluded d. Per Share Cash Dividend Rate = = = \$.519 per share * 6,750 = 8,000 Shares – 1,500 Treasury Shares Purchased + 250 Treasury Reissued E12–12 a. Only those shares that are both issued and outstanding are e...
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