Common stock balance sheet disclosure
Response to the following problem:
The balance sheet caption for common stock is the following:
Common stock, $5 par value, 2,000,000 shares authorized,
1,400,000 shares issued, 1,250,000 shares outstanding $ ?
Required:
a. Calculate the dollar amount that will be presented opposite this caption.
b. Calculate the total amount of a cash dividend of $0.15 per share.
c. What accounts for the difference between issued shares and outstanding shares?