Question

Mission Corporation reported the following equity section on its current balance sheet. The commonstock is currently selling for $18.00 per share.Common Stock, $5 par, 194,000 shares authorized, 143,000 shares issued andoutstanding $715,000Paid-In Capital in Excess of ParCommon 130,000Retained Earnings 301,000Total Stockholders' Equity $1,146,000After the declaration and distribution of a 12% stock dividend, what is the total number of commonshares issued?A) 160,160 B) 17,160 C) 143,000 D) 13,000

Answer 1

After a 12% stock dividend, the total number of common shares issued by Mission Corporation will be 160,160 shares. This is calculated by multiplying the original 143,000 shares by 12% to get the additional shares, then adding them to the original shares.

Step-by-step explanation:

To calculate the total number of common shares issued after a 12% stock dividend, we first need to determine how many extra shares the stock dividend will create. If you start with 143,000 shares and issue a 12% stock dividend, you multiply the existing shares by 12% (0.12) to find the additional shares that will be distributed:

143,000 shares × 0.12 = 17,160 additional shares

Then, you add these additional shares to the original amount of shares to find the new total number of shares issued:

143,000 original shares + 17,160 additional shares = 160,160 total shares

Therefore, the correct answer is A) 160,160.

Answer 2

The correct option is A. 160,160

Step-by-step explanation:

For computing the total number of common share issued, we have to multiply the common share issued with the dividend percentage

In mathematically,

Total common share issued = Issue of common shares × (1+dividend rate)

where,

Issue of common shares is 143,000 shares

and, the dividend rate is 12%

Now put these values to the above formula

So, the answer would be equal to

= 143,000 shares × ( 1 + 12%)

= 143,000 shares × 1.12

= 1601,60 shares

Since the common share value is given without considering the dividend, so we have to consider it for calculating the total number of common share issued.

The remaining information which is given in the question is irrelevant. Hence, it is ignored.

Hence, the total number of common shares issued is 1601,60 shares

Therefore, the correct option is A. 160,160