The balance sheet caption for common stock is the following: Common stock, $5 par value, 4,000,000 shares

Question:

The balance sheet caption for common stock is the following:

Common stock, $5 par value, 4,000,000 shares authorized,
2,800,000 shares issued, 2,500,000 shares outstanding ............................................... $ ?

Required:

a. Calculate the dollar amount that will be presented opposite this caption.

b. Calculate the total amount of a cash dividend of $0.30 per share.

c. What accounts for the difference between issued shares and outstanding shares?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
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... 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...

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