Common stock—calculate issue price and dividend amount The balance sheet caption for common stock is the following:

Common stock without par value, 2,000,000 shares authorized,

400,000 shares issued, and 360,000 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?