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

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

    Shares authorized: 200,000.

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

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

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

    Net income: $240,340.

    Dividends declared and paid: $123,220.

    Retained earnings beginning balance: $555,000.

    
    

    Required:

    1. Complete the following tabulation:

    2. Calculate 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. Assuming the stock split mentioned above, prepare any journal entry that should be made.

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

    
    

    Complete the following tabulation:

    
    

    
    

    Shares authorized
    Shares issued
    Shares outstanding

    • Req 1
    • 2. Calculate the balance in the Additional paid-in capital account.
      3. What is earnings per share (EPS)? (Round your answer to 2 decimal places.)
      4. What was the dividend paid per share? (Round your answer to 2 decimal places.)
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    2.	Additional paid-in capital
    3.	Earnings per share
    4.	Dividend 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?

    Show less

    
    

    
    

    5.
    6	Par value per share
    	Shares outstanding

    
    

    7. Assuming the stock split mentioned above, prepare any journal entry that should be made.
    8. Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared (after treasury stock repurchase) when the market price of the common stock was $21. Prepare any journal entry that should be made.

    (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

    rev: 12_11_2019_QC_CS-191710

    • Record entry for stock split.

  • Note: Enter debits before credits.

    
    

    
    

    Transaction	General Journal	Debit	Credit
    A

    • Record the entry for the stock dividend.

  • Note: Enter debits before credits.

    
    

    
    

    Transaction	General Journal	Debit	Credit
    B

    
    

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Answer rating: 100% (QA)

1 shares authorized 200000 shares issued 212500017 125000 shares outst... View the full answer