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 $86,000 9,890 464,100 21,000 9,050 outstanding 5,100 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

1 The number of shares of preferred stock issued was ($86,000 prefered stock value / $20 par value) 4,300 shares 2 The number of shares of preferred stock outstanding was (4,300 shares- 1,000 shares) 3,300shares 3 the average issue price of the preferred stock was (preferred stock +additional paid in capital) / number of shares => (86,000+9,890) /4,300 $22.30 per share 4 the average issue price of common stock was ($464,100/5,100 shares) $91 per share 5 The treasury stock transaction increased (decreased ) stockholder's equity by (decrease). (9,050) 6 The treasury stock cost ($9,050/1,000) $9.05 per share 7 Total stockholder's equity is (86000+9890+464100+21000-9050) $571,940

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