At December 31, 2014, the records of NCIS Corporation provided the following selected and incomplete data: Common

Question:

At December 31, 2014, the records of NCIS Corporation provided the following selected and incomplete data:

Common stock (par $10; no changes during the year).

Shares authorized, 200,000.

Shares issued, ? ; issue price $17 per share; cash collected in full, $2,125,000.

Shares held as treasury stock, 3,000 shares, cost $20 per share.

Net income, $240,340.

Dividends declared and paid, $123,220.

Retained earnings balance, January 1, 2014, $555,000.

The treasury stock was acquired after a stock split was issued.

Required:

1. Complete the following tabulation:

Shares authorized _____ .

Shares issued _____ .

Shares outstanding _____ .

2. The balance in the Capital in Excess of Par account appears to be $ _____ .

3. Earnings per share is $ _____ .

4. Dividend paid per share of common stock is $ _____ .

5. Treasury stock should be reported on the balance sheet under the major caption _____ in the amount of $ _____ .

6. Assume that the board of directors voted a 100 percent stock split (the number of shares will double). After the stock split, the par value per share will be $ _____ , and the number of outstanding shares will be _____ .

7. Assuming the stock split mentioned above, give any journal entry that should be made. If none, explain why.

8. Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared and issued when the market price of the common stock was $21. Give any journal entry that should be made.

Common Stock
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...