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Emieloy2959
Emieloy2959
06.05.2020 • 
Business

Safari Fusion reported shareholders’ equity as follows: Preferred stock, $10.00 par value Authorized 10,000 shares; issued–None $ — Common stock, $1 par value Authorized 30,000 shares; issued 15,000 shares 15,000 Capital in excess of par value 45,000 Retained earnings 90,000 Total paid-in capital 150,000 Less: Treasury stock, at cost (2,000 common shares) (16,000) Total stockholders’ equity $134,000 Requirements 1. What was the average issue price per share of the common stock? 2. Journalize the issuance of 1,000 shares of common stock at $4 per share. Use Safari’s account titles. 3. How many shares of Safari’s common stock are outstanding? 4. How many shares of common stock would be outstanding after Safari split its common stock 3 for 1? 5. Use Safari account titles, journalize the distribution of a 10% stock dividend when the market price of Safari common stock is $5 per share. Safari distributes the common stock dividend on the shares outstanding, which were computed in requirement 3. 6. Journalize the following treasury stock transactions, which occur in the order given: a. Safari purchases 500 shares of treasury stock at $8 per share. b. Safari sells 100 shares of treasury stock for $9 per share. c. Safari sells 200 shares of treasury stock for $6 per share.

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