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At the end of the year, the records of Kwan Corporation provided the following selected and incomplete data:

Common stock ($10 par value); no changes in account during the year.

Shares authorized: 270,000.

Shares issued: __________blank (all shares were issued at $15 per share; $2,160,000 total cash collected).

Treasury stock: 3,000 shares (repurchased at $17 per share).

The treasury stock was acquired after a stock split was announced.

Net income: $276,360.

Dividends declared and paid: $152,280.

Retained earnings beginning balance: $625,000.

Required:

Determine the following tabulation: a. The number of authorized shares. b. The number of issued shares. c. The number of outstanding shares.

1. Calculate the balance in the Additional paid-in capital account.

2. What is earnings per share (EPS)?

3. What was the dividend paid per share?

4. In what section of the balance sheet should treasury stock be reported? What is the amount of treasury stock that should be reported?

5. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, what will be the par value per share? How many shares will be outstanding?

6. Assuming the stock split mentioned above, prepare any journal entry that should be made.

8. Disregard the stock split (assumed above). Assume instead that a 10 percent stock dividend was declared before any treasury stock was acquired. The market price of the common stock at the time the dividend was declared was $18. Prepare any journal entry that should be made.

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