The following table lists the stockholders equity accounts appearing on the bala

Question

The following table lists the stockholders equity accounts appearing on the balance sheet of a corporation on Dec. 31, 2008. Answer the questions below the table.



Account    amount

Common stock, $10 par value                                      $300,000

Paid-in capital in excess of par-common                         270,000

Preferred stock, $50 par value                                      125,000

Paid-in capital in excess of par-preferred                        30,000

Retained Earnings                                                          225,000

a. how many shares of common stock have been issued?

b what was the average issuance price of the comoon stock?

c how many shares of preferred stock have been issued?

d what was the average issuance price of the preferred stock?

e what is total paid-in capital

d what is total stockholders' equity?

Explanation / Answer

a. how many shares of common stock have been issued? 300,000/10 = 30,000 shares of common stock b what was the average issuance price of the comoon stock? (300,000+270,000)/30,000 = $19 c how many shares of preferred stock have been issued? 125,000/50 = 2,500 shares of preferred d what was the average issuance price of the preferred stock? (125,000+30,000)/2,500 = $62 e what is total paid-in capital 270,000+30,000=$300,000 d what is total stockholders' equity? Add up all amounts = $950,000

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