Question

Mission Corporation reported the following equity section on its current balance sheet. The commonstock is currently selling for $18.00 per share.Common Stock, $5 par, 194,000 shares authorized, 143,000 shares issued andoutstanding $715,000Paid-In Capital in Excess of ParCommon 130,000Retained Earnings 301,000Total Stockholders' Equity $1,146,000After the declaration and distribution of a 12% stock dividend, what is the total number of commonshares issued?A) 160,160 B) 17,160 C) 143,000 D) 13,000

Answer 1

Answer:

The correct option is A. 160,160

Explanation:

For computing the total number of common share issued, we have to multiply the common share issued with the dividend percentage

In mathematically,

Total common share issued = Issue of common shares × (1+dividend rate)

where,

Issue of common shares is 143,000 shares

and, the dividend rate is 12%

Now put these values to the above formula

So, the answer would be equal to

= 143,000 shares × ( 1 + 12%)

= 143,000 shares × 1.12

= 1601,60 shares

Since the common share value is given without considering the dividend, so we have to consider it for calculating the total number of common share issued.

The remaining information which is given in the question is irrelevant. Hence, it is ignored.

Hence, the total number of common shares issued is 1601,60 shares

Therefore, the correct option is A. 160,160