Reference no: EM131791872

Assignment

Paid-in capital: Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized, 74,000 shares issued and outstanding $ 8,880,000 $ 8,880,000 Common stock, $6 par value, 600,000 shares authorized, 420,000 and 400,000 shares issued, respectively ? 2,400,000 Additional paid-in capital 14,670,000 14,140,000 Retained earnings 12,070,000 11,794,000 Less: Treasury common stock, at cost; 21,000 shares and 19,500 shares, respectively (1,932,000 ) (1,872,000 )Total stockholders' equity $ ? $ 35,342,000

1. The only transaction affecting additional paid-in capital during the month of May was the sale of additional common stock. At what price per share were the additional shares sold?

2. During May, dividends on preferred stock equal to one-half of the 2016 dividend requirement were declared and paid. There were no common dividends declared or paid in May. Calculate net income for May.

3. Assume that on June 1 the board of directors declared a cash dividend of $0.23 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15. Calculate the total amount of the dividend.

4. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend.

5. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4% stock dividend on the issued shares of common stock. Prepare journal entry to show the issuance of the stock dividend.