Question: The balance sheet caption for common stock is the following: Common stock without par value, 2,000,000 shares authorized, 400,000 shares issued, and 360,000 shares outstanding

The balance sheet caption for common stock is the following:
Common stock without par value, 2,000,000 shares authorized,
400,000 shares issued, and 360,000 shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $2,600,000

Required:
a. Calculate the average price at which the shares were issued.
b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different.
c. If a cash dividend of $0.60 per share were declared, calculate the total amount of cash that would be paid to stockholders.
d. What accounts for the difference between issued shares and outstanding shares?

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a Average price at which shares issued Balance sheet amount Number of shares issued 2600000 4000... View full answer

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