The following items were shown on the balance sheet of Exuma Corporation on Dece
ID: 2417899 • Letter: T
Question
The following items were shown on the balance sheet of Exuma Corporation on December 31, 2017:
Stockholders’ Equity
Paid-In Capital
Capital Stock
Common stock, $10 par value, 360,000 shares authorized; ______ shares issued and ______ outstanding $1,650,000
Additional paid-in capital In excess of par value 165,000
Total paid-in capital 1,815,000
Retained Earnings 750,000
Total paid-in capital and retained earnings 2,565,000
Less: Treasury stock (15,000 shares) (180,000)
Total stockholders' equity $2,385,000
Instructions Complete the following statements and show your computations.
(a) The number of shares of common stock issued was _______________.
(b) The number of shares of common stock outstanding was ____________.
(c) The total sales price of the common stock (not the per share price) when issued was $____________.
(d) The cost per share of the treasury stock was $_______________.
(e) The average issue price per share of the common stock was $______________.
(f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $_______________.
Explanation / Answer
(a) The number of shares of common stock issued was _______________.
$1,650,000 ÷ $5 par value = 330,000 shares issued.
(b) The number of shares of common stock outstanding was ____________.
330,000 issued - 15,000 in treasury = 315,000 shares outstanding
(c) The total sales price of the common stock (not the per share price) when issued was $____________.
Common stock $1,650,000 + In excess of par value 165,000 = $1,815,000
(d) The cost per share of the treasury stock was $_______________.
$180,000 ÷ 15,000 = $12 per share.
(e) The average issue price per share of the common stock was $______________.
$1,815,000 ÷ 330,000 shares = $5.50 per share.
(f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $_______________.
11,250 shares × $12 = $135,000.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.