Common stock-calculate issue price and dividend amount
Response to the following problem:
The balance sheet caption for common stock is the following:
Common stock without par value, 1,000,000 shares authorized,
200,000 shares issued, and 180,000 shares outstanding $2,600,000
Required:
a. Calculate the average price at which the shares were issued.
b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different.
c. If a cash dividend of $0.60 per share were declared, calculate the total amount of cash that would be paid to stockholders.
d. What accounts for the difference between issued shares and outstanding shares?