The stockholders\' equity section on the December 31, 2009, balance sheet of Che
ID: 2353213 • Letter: T
Question
The stockholders' equity section on the December 31, 2009, balance sheet of Chemfast Corporation reported the following amounts:Contributed Capital
Preferred Stock (par $18; authorized 10,500 shares, ? issued, of which 800 shares are held as treasury stock) $ 174,600
Additional Paid-in Capital, Preferred 13,800
Common Stock (no-par; authorized 21,000 shares, issued and outstanding 9,000 shares) 647,000
Retained Earnings 26,000
Preferred Treasury Stock, 800 shares at cost 2,800
Assume that no shares of treasury stock have been sold in the past.
Required:
Complete the following statements. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
1. The number of shares of preferred stock issued was:
2. The number of shares of preferred stock outstanding was
3. The average issue price of the preferred stock was:$ per share.
4. The average issue price of the common stock was $
5. The treasury stock transaction decreased stockholders' equity by $
6. The treasury stock cost $ per share.
7. Total stockholders' equity is $ .
Explanation / Answer
The stockholders' equity section on the December 31, 2009, balance sheet of Chemfast Corporation reported the following amounts:
Contributed Capital
Preferred Stock (par $18; authorized 10,500 shares, ? issued, of which 800 shares are held as treasury stock) $ 174,600
Additional Paid-in Capital, Preferred 13,800
Common Stock (no-par; authorized 21,000 shares, issued and outstanding 9,000 shares) 647,000
Retained Earnings 26,000
Preferred Treasury Stock, 800 shares at cost 2,800
Assume that no shares of treasury stock have been sold in the past.
Required:
Complete the following statements. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
1. The number of shares of preferred stock issued was:
$$ 174,600 ÷ $18 =9700
2. The number of shares of preferred stock outstanding was
9700 -800= 8900
3. The average issue price of the preferred stock was:$ per share.
174,600 +13,800 /9700=19.42
4. The average issue price of the common stock was $
647,000 /9,000=71.88
5. The treasury stock transaction decreased stockholders' equity by $
Decreased 2 ,800
6. The treasury stock cost $ per share.
2 ,800 /800=3.5
7. Total stockholders' equity is $ .
$ 174,600 +13,800 +647,000 +26,000 -2,800 =858600
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