Compute the cash received from the sale of common stock


Response to the following problem:

The following selected information is from the Teeter Company's comparative balance sheets.

At December 31                                                                        2011                                      2010

Common stock, $10 par value . . . . . . . . .                                $ 310,000                              $300,000

Paid-in capital in excess of par . . . . . . . . .                               1,134,000                               684,000

Retained earnings . . . . . . . . . . . . . . . . . . .                               627,000                                575,000

The company's net income for the year ended December 31, 2011, was $196,000.

1. Compute the cash received from the sale of its common stock during 2011.

2. Compute the cash paid for dividends during 2011.

 

 

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Accounting Basics: Compute the cash received from the sale of common stock
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