????? .. Merge & Center , Bombay, Inc Statement of Stockholders Equity Stockhold
ID: 2411890 • Letter: #
Question
????? .. Merge & Center , Bombay, Inc Statement of Stockholders Equity Stockholders Equity Contributed Capital Preferred Stock $50 par, shares issued and outstanding 100,000 Common Stock $5 par,60,000 shares authorized, 40,000 shares issued 36,000 shares are outstanding 5 200,000 Additional Paid in Capital-Common Stock 100,000 $ 300,000 Total Contributed Capital 5 400,000 120.000 9 Retained Earnings 5 520,000 21 Total Contributed Capital & Retained Earnings 23Less: Treasury Stock 24 25 Total Stockholders Equity 26 27 28 1. What was the common stock sale price per share if the par value is 55.00 29 0 2. How many shares of Treasury stock was purchased by Bombay and at what valoe is it recorded? 31 32 3. What is Retained Earnings? 34 4. How may shares of preferred stock was issued and still outstanding? of a cash dividend? 35 36 5 37 S. Which account on the statement of stockhoiders equity would be 38 6. Why doesn't Preferred Stock have Additional Paid in Capital-Preferred Stock Sheet1 ReadyExplanation / Answer
Answer to Part 1.
Sale Price of Common Stock = (Common Stock + APIC – Common Stock) / Common Stock Issued
Sale Price of Common Stock = (200,000 + 100,000) / 40,000
Sale Price of Common Stock = 300,000 / 40,000
Sale Price of Common Stock = $7.50
Answer to Part 2.
No. of Treasury Stock purchased = Common Stock Issued – Common Stock outstanding
No. of Treasury Stock purchased = 40,000 – 36,000
No. of Treasury Stock purchased = 4,000 Shares
Answer to Part 3.
Retained Earnings = $120,000
Answer to Part 4.
No. of Stock issued and Outstanding = Preferred Stock / Par Value of Preferred Stock
No. of Stock issued and Outstanding = 100,000 / 50
No. of Stock issued and Outstanding = 2,000 Stocks
Answer to Part 5.
Retained Earnings will be altered on payment of Cash payment by the amount of dividend declared and paid.
Answer to Part 6.
Preferred Stock are issued at the par Value, that is why Preferred stocks don’t have Additional Paid-in Capital – Preferred Stock.
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