P$11-1$

Notes $\backslash$& LO$11-1,11-2,11-3,11-4,11-6$

Finding Missing Amounts $($AP$11-1)$

At the end of the year, the records of Kwan Corporation provided the following selected and incomplete data:

Common stock $(\backslash (\backslash$$ $10\backslash )$ par value$)$; no changes in account during the year.

Shares authorized: $200,000.$

Shares issued: $\backslash (\backslash$quad $\backslash )$ all shares were issued at $\backslash (\backslash$$ $17\backslash )$ per share; $\backslash (\backslash$$ $2,125,000\backslash )$ total cash collected$).$

Treasury stock: $3,000$ shares $($repurchased at $\backslash (\backslash$$ $20\backslash )$ per share$).$

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

Net income: $\backslash$$$240,340.$

Dividends declared and paid: $\backslash$$$123,220.$

Retained earnings beginning balance: $\backslash (\backslash$$ $555,000\backslash ).$

Required:

$1.$ Determine:

a$.$ The number of authorized shares.

$\backslash ($ b $\backslash ).$ The number of issued shares.

$\backslash ($ c $\backslash ).$ The number of outstanding shares.

$2.$ What is the balance in the Additional paid$-$in capital account?

$3.$ What is earnings per share $($EPS$)?$

$4.$ What was the dividend paid per share?

$5.$ In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported?

$6.$ Assume that the board of directors voted a $2-$for$-1$ stock split. After the stock split, what will be the par value per share? How many shares will be outstanding?

$7.$ Provide the journal entry associated with the stock split above. If no journal entry is required, explain why. Required:

$1.$ Determine:

$\backslash ($ a $\backslash ).$ The number of authorized shares.

$\backslash ($ b $\backslash ).$ The number of issued shares.

$\backslash ($ c $\backslash ).$ The number of outstanding shares.

$2.$ What is the balance in the Additional paid$-$in capital account?

$3.$ What is earnings per share $($EPS$)?$

$4.$ What was the dividend paid per share?

$5.$ In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported?

$6.$ Assume that the board of directors voted a $2-$for$-1$ stock split. After the stock split, what will be the par value per share? How many shares will be outstanding?

$7.$ Provide the journal entry associated with the stock split above. If no journal entry is required, explain why.

$8.$ Disregard the stock split in $(7).$ Assume instead that a $10$ percent stock dividend was declared before any treasury stock was acquired. The market price of the common stock at the time the dividend was declared was $\backslash (\backslash$$ $21\backslash ).$ Provide the journal entry associated with the stock dividend. If no journal entry is required, explain why.