An electric utility issued 3000 shares of common stock all

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An electric utility issued 3,000 shares of common stock, all of the same class; 2,800 shares are outstanding and 200 are held in the treasury. On August 15, 20XX, the board of directors declared a cash dividend of $2.10 per share, payable on September 15, 20XX, to stockholders of record on August 31, 20XX.

What are the entries to the accounting equation (by account title)? Give the appropriate journal entries.

Date of Declaration
Assets = Liab. + Equity

Date of Record
Assets = Liab. + Equity

Date of Payment
Assets = Liab. + Equity

Stockholders' Equity

The following information comes from a balance sheet at December 31, 20XX:

Common Stock, $1 par, 1,000,000 shares authorized $ 160,000
Paid-in Capital in Excess of Par--Common Stock 120,000
Total Capital Stock 280,000
Retained Earnings 80,000
Less: Treasury Stock (4,000 common shares at cost)
Total Stockholders' Equity $320,000

Answer the following questions:

1. How many shares of common stock are issued?

2. How many shares of common stock are outstanding?

3. Assuming that all shares were sold at the same price, what was the original selling price per share?

4. If the company declares a 2-for-1 stock split on December 31, 20XX, describe the resulting change, if any, in the balances in capital stock accounts, par value, issued shares and outstanding shares of the common stock. Be detailed with words and numbers.

Reference no: EM13376407

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