The balance sheet caption for common stock is the following: Common stock without par value, 3,800,000 shares authorized, 820,000 shares issued, and 720,000shares outstanding $ 3,400,000 Required:Calculate the average price at which the shares were issued.If these shares had been assigned a stated value of $1 each, show how the caption here would be different.If a cash dividend of $0.20 per share were declared, calculate the total amount of cash that would be paid to stockholders.What accounts for the difference between issued shares and outstanding shares?

1. Calculate the average price at which the shares were issued. Average price at which the shares…

Answered: The balance sheet caption for common…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 15E

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The balance sheet caption for common stock is the following:

Common stock without par value, 3,800,000 shares authorized, 820,000 shares issued, and 720,000

shares outstanding

3,400,000

Required:

Calculate the average price at which the shares were issued.
If these shares had been assigned a stated value of $1 each, show how the caption here would be different.
If a cash dividend of $0.20 per share were declared, calculate the total amount of cash that would be paid to stockholders.
What accounts for the difference between issued shares and outstanding shares?

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