TreasuryS Prepare the stockholders\' equity section of the bala E132 The stockho

ID: 2561327 • Letter: T

Question

TreasuryS Prepare the stockholders' equity section of the bala E132 The stockholders Instrucrions 10.000 sha stock with during th ?The stockholders' equity section of Haley Corporation at Decem as uestions about rs 'equity section follow HALEY CORPORATION Balance Sheet (partial) Jan. 10 Mar. 1 Apr. 1 Paid-in capital rized, 6,000 shares issuec and outstanding Total paid-in capital Total paid-in capital and retained earnings n stock, no par, 750,000 shares authorized, 600,000 shares issued 00,00 1,500,000 1,858,000 3,358,000 64,000 $3,294,000 May Aug Common 1,200,000 Retained earnings Sept Nov Less: Treasury stock (10,000 common shares) Ins Total stockholders' equity Instructions (c From a review of the stockholders' equity section, as chief accountant write a memo to the president of the company answering the following questions. (a) How many shares of common stock are outstanding? Go o ooo--1 o (b) Assuming there is a stated value, what is the stated value of the common stock? D 530 (o) What is the par value of the preferred stock?

Explanation / Answer

Answer:

(a) How many shares of common stock are outstanding?

Amount $

Common stock issued

600,000

Less:

Tresury stock

10,000

common stock are outstanding

590,000

Common stock are outstanding =$590,000

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(b) Assuming there is a stated value, what is the stated value of the common stock?

Answer:

Stated Valued

=1,200,000 /600,000

=$ 2 per share

stated value of the common stock =$2 per share

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(c) What is the par value of the preferred stock?

Par value

=300,000 / 6,000

=$ 50 per preferred share

Par value of the preferred stock =$ 50per share