At December 31 2014 the records of Nortech Corporation

provided #1053
At December 31, 2014, the records of Nortech Corporation provided the following selected and
incomplete data:Common shares, no par value Shares authorized, 200,000 Shares issued, ? ;
issue price $ 17 per share; cash collected in full, $ 2,125,000 Net earnings for 2014, $ 118,000
Dividends declared and paid during 2014, $ 75,000 Prior-period error, correction of 2013
accounting error, $ 9,000 (a credit, net of income tax) Retained earnings balance, January 1,
2014, $ 155,000Required:1. Complete the following tabulation: Shares authorized, __________
. Shares issued, __________ . Shares outstanding, __________ . 2. EPS, $ __________ . 3.
Dividend paid per common share, $ __________ . 4. The prior- period error should be reported
on the __________ as an addition to __________ (or a deduction from __________ ). 5. The
amount of retained earnings available for dividends on January 1, 2014, was $ __________ . 6.
Assume that the board of directors voted a 100 percent stock split ( the number of shares will
double). After the stock split, the average issue price per share will be $ __________ and the
number of outstanding shares will be __________ . 7. Assume that the company declared a
100 percent stock dividend instead of the 100 percent stock split. Compare and contrast the
stock dividend and the stock split with regard to their effects on shareholders’ equity
components.View Solution:
At December 31 2014 the records of Nortech Corporation provided

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