Reference no: EM132203973
Rawlings Company has the following equity accounts at the beginning and end of Year Three:
January 1, Year ThreeDecember 31, Year ThreePreferred Stock, 6%, $100 par value$2,000,000$2,000,000Common Stock, $1 Par Value$160,000$200,000Capital in Excess of Par, Common$12,000,000$16,000,000Retained Earnings$1,100,000$1,800,000
The common stock account increased because 40,000 shares of common stock were issued to the public on September 1, Year Three. The preferred stock was paid its dividend during the year. A cash dividend was also distributed on the common stock. Net income for the year was $1,200,000.
- How much cash was received when the common stock was issued during Year Three?
- What was the total cash dividend paid on the common stock shares during the
- year?
- What was the company's basic earnings per share for Year Three?