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Question - C Inc., is authorized by its charter to issue 10,000 shares of $ 10 par common stock. On 3/1/2009, the first issuance of common stock was made, 2000 shares for $ 12 each. On 2/1/2010, 3000 additional shares were issued for $ 14. On 6/1/2010, 1200 of the outstanding shares were repurchased by the corporation for $ 11 each, but 200 of them were reissued the next day at a price of $ 15 each. Like most corporations, C uses the cost method to account for any treasury stock.
How many shares of common stock are outstanding now? If a $ 2 per share dividend were declared today, how many dollars would the corporation need to pay it? How much gain would the corporation recognize on these common stock transactions? How much additional paid in capital (total Paid in Capital on Common or Treasury Stock) would the corporation have?
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Prepare a process cost report for the Mixing Department for January and explain how the analysis for the Cooking Depart men t will differ from the analysis for the mixing Department.
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