The stockholders\' equity section on the December 31 balance sheet of Chemfast C

Question

The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts: Contributed Capital Preferred Stock (par $20; authorized 10,000 shares,? issued, of which 1,000 shares are held as treasury stock) Additional Paid-in Capital, Preferred Common Stock (no-par, authorized 20,000 shares, issued and $ 84,000 9,450 450,000 20,000 9,000 outstanding 5,000 shares) Retained Earnings Treasury Stock, 1,000 Preferred shares at cost Assume that no shares of treasury stock have been sold in the past. Required: Complete the following statements. (Decreases should be indicated by a minus sign. Round per share to 2 decimal places.) 1. The number of shares of preferred stock issued was 2. The number of shares of preferred stock outstanding was 3. The average issue price of the preferred stock was 4. The average issue price of the common stock was 5. The treasury stock transaction increased (decreased) stockholders' equity by 6. The treasury stock cost 7. Total stockholders' equity is per share per share

Explanation / Answer

Answer 1 - No. of Preferred Stock issued = $ 84000 / $ 20 par value = 4200 shares

Answer 2 - No. of Preferred Stock outstanding = 4200 shares - Treasury stock 1000 shares = 3200 shares

Answer 3 - Average Issue price of Preferred Stock = ( 84000 + 9450 ) / 4200 shares = $ 22.25 per share

Answer 4 - Average Issue price of Common Stock = 450000 / 5000 shares = $ 90 per share

Answer 5 - Decreased Stockholder's equity by $ 9000

Answer 6 - Treasury stock cost = 9000 / 1000 = $ 9 per share

Answer 7 - Total Stockholder's equity = 84000 + 9450 + 450000 + 20000 - 9000 =

$ 554450

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