McCormack, Inc. recorded certain capital stock transactions shown in the, follow
ID: 2460468 • Letter: M
Question
McCormack, Inc. recorded certain capital stock transactions shown in the, following repective journal entries: (1) issuance of common stock for $59 cash share; (2) subsequent repurchase of some of the shares at $58 per share, and (3) reissuance of some of the reacquired shares. How many shares were originally issued What was the Par (or Stated) Value of the shares that were issued How many shares of Treasury Stock were reacquired How many shares of Treasury Stock were reissued At what price per share was the treasury stock reissued If these are the only stock transactions the corporation has ever had, and the Board is considering a cash Dividend...How many "outstanding shares would, at this time, be eligible to receive the dividend?Explanation / Answer
Answer A. No. of Shares Originally issued = +354000 / $59 = 6000 Shares Answer B. Par Value of the Shares that were Issued = $240000 Par Value Per share = $240000 / 6000 Shares = $40 per share Answer C. No. of shares of Treasury Stock were reacquired = $58000 / $58 = 1000 Shares Answer D. No. of Treasury Stock were reissued = $29000/ $58 = 500 Shares Answer E. Price per share was the Treasuury Stoock reissued = $38000/500 Shares = $76 per Share Answer F. No. of O/s Shares eleigible to receive the dividend = 6000 (Issued Shares) - 500 Shares (Treasury Shares) = 5500 Shares