The stockholders\' equity section of the balance sheet of Crammond Corporation a

Question

The stockholders' equity section of the balance sheet of Crammond Corporation at December 31, appears as follows:

What was the average issue price per share of preferred stock?

Stockholders' Equity $2 preferred stock, $100 par, 10,000 shares authorized $ 670,000 Common stock, $1 par, 100,000 shares authorized 72,000 Additional Paid-in Capital: From issuance of preferred stock 165,000 From issuance of common stock 710,000 Total paid-in capital 1,617,000 Retained earnings 835,000 Total Stockholders' equity $ 2,452,000

Explanation / Answer

The average issue price per share of preferred stock was:

= ($670,000/6,700) + ($165,000/6,700)

= $124.63

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