Question

At December 31, the records of Nortech Corporation provided the following selected and incomplete data:Common stock (par $1; no changes during the current year).Shares authorized, 500,000.Shares issued, ?; issue price $22 per share.Common Stock account, $200,000.Shares held as treasury stock, 3,000 shares, cost $20 per share.Net income for the current year, $147,750.Dividends declared and paid during the current year, $49,250.Retained Earnings balance, beginning of the year, $155,000.Required:Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share. (Round "per share" answers to 2 decimal places.)

Answer 1

Answer:

The following balances have been worked out from the information given in question;

Explanation:

No. of Common stocks issued     $200,000/22         9,091

Paid in capital-Common Stocks               9,091*(22-1)  $90,909      

No. of Treasury Stock                                                         3,000

Treasury stock            3,000*20                                         $60,000      

EPS   =$147,750/(9,091 -3,000)                                          $24

Retained Earnings ($155,000+$147,750-$49,250)           $253,500