ezto.mheducation.com 11.00 points The stockholders\' equity section on the Decem

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ezto.mheducation.com 11.00 points The stockholders' equity section on the December 31 balance sheet of Chemtast Corporati following amounts: reported the 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 114,000 17,100 outstanding 6,500 shares) Retained Eamings Treasury Stock·1,000 Preferred shares at cost 682,500 35,000 9,750 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 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 F7

Explanation / Answer

Ans. 1 The number of shares of preferred stock issued was: 5700 114000 / 20 5700 Ans. 2 The number of shares of preferred stock outstanding was: 4700 No. of issued shares - No. of shares stock in treasury 5700 - 1000 4700 Ans. 3 The average issue price of the preferred stock was: 23 per share (Preferred stock issued + Additional paid in capital) v/ no. of share issued (114000 + 17100) / 5700 23 per share Ans. 4 The average issue price of the common stock was: 105 682500 / 6500 105 Ans. 5 The treasury stock transaction increased (decreased) stockholders's equity by: 9750 And. 6 The treasury stock cost: 9.75 per share Preferred shares at cost / no. of shares 9750 / 1000 9.75 per share Ans. 7 Total Stockholders' equity is: 838850 contributed capital Preferred stock (par$20; authorized 10,000 shares,? Issued, 114000 of which 1000 shares are held as treasury stock) Add: Additional paid-in-capital preferred 17100 Add: common stock (no par; authorized 20000 shares issued and outstanding 6500 shares) 682500 Add: Retained earnings 35000 Less: Treasury stock, 1000 preferred shares at cost -9750 Total stockholders' equity 838850

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