hello, The balance sheet caption for common stock is the following:Common stock without par value, 4,100,000 shares authorized,840,000 shares issued, and 690,000 shares outstanding$4,000,000Required: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 $0.12 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?XAnswer is not complete.Required ARequired BRequired CRequired DIf a cash dividend of $0.12 per share were declared, calculate the total anmount of cash that would be paid to stockholders.Total cash dividendRequired BRequired D >

Answered: The balance sheet caption for common…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

See similar textbooks

Related questions

Concept explainers

Question

hello,

The balance sheet caption for common stock is the following:
Common stock without par value, 4,100,000 shares authorized,
840,000 shares issued, and 690,000 shares outstanding
$4,000,000
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 $0.12 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?
XAnswer is not complete.
Required A
Required B
Required C
Required D
If a cash dividend of $0.12 per share were declared, calculate the total anmount of cash that would be paid to stockholders.
Total cash dividend
Required B
Required D >

Expert Solution

Step 1

Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-parts solved please post the complete question and mention the sub-parts to be solved.

a : For calculating the average price at the time of issue share :

Average Price = Amount received after issuing / Shares issued.

= $4,000,000 / 840,000

= 4.76 per share

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions