Hi guys, I\'m just struggling with the very last question of average cost of Com

Question

Hi guys, I'm just struggling with the very last question of average cost of Common Shares. The rest I got right. Any help would be appreciated! Thanks in advance!

Exercise 11-3 Cinrich Ltd. was incorporated as a private company on January 2, 2018, and is authorized to issue an unlimited number of common shares and $1 preferred shares. The company had the following share transactions in its first month of operations: Jan. Issued 186,000 common shares for $1.40 per share. 6 12 Issued 54,000 common shares for $1.80 per share. 17 Issued 9,300 preferred shares for $25.00 per share 18 Issued 466,000 common shares for $2.00 per share 24 Reacquired 193,000 common shares at $1.90 per share. 31 Issued 9,800 common shares in exchange for $14,700 of legal services.

Explanation / Answer

Value of Common Stock = $260,400 + $97,200 + $932,000 - $334,273 + $14,700
Value of Common Stock = $970,027

Number of Common Shares = 186,000 + 54,000 + 466,000 - 183,000 + 9,800
Number of Common Shares = 532,800

Average Cost of Common Share = Value of Common Stock / Number of Common Shares
Average Cost of Common Share = $970,027 / 532,800
Average Cost of Common Share = $1.821

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