17:30 .11 LTE Chapter 10 Packet-Lecture notes Use the following to answer questi

Question

17:30 .11 LTE Chapter 10 Packet-Lecture notes Use the following to answer questions 18-22 18. shares. How many shares of preferred stock have been issued? 19 shares. How many shares of common stock have been issued? 20. S_ per share. If the preferred shares were issued at an average price of S105 per share. At what price per share were the common shares issued? 21. S If retained earnings at the beginning of the period was $652,400 and Net income was $268,500, what were the declared dividends for the year? 22. shares. If the treasury stock was reacquired at S12.00 per share, how many shares were Use the following to answer questions 23-26 G Corporation was organized on January 3, 20XE. The firm was authorized to issue 50,000,000 shares of $0.50 par common stock. During 20XE G had the following transactions relating to shareholders' equity Previous Next To Do Inbox

Explanation / Answer

Question 18 : Answer = 250 shares

Total Preferred stock par value = $25,000

Par value per preferred stock = $100 per preferred stock

Total number of preferred stock issued = $25,000 ÷ $100 = 250 preferred stock

Question 19 Answer = 100,000 shares

Total Common stock par value = $10,000

Par value per Common stock = $0.10 per common stock

Total number of common stock issued = $10,000 ÷ $0.10 = 100,000 common stock

Question 20: Answer is $8

Issue price of preferred stock =$105

Number of preferred shares issued (From question - 18) = 250 preferred shares

a. Additional paid in capital from Preferred stock = 250 shares x [$105 - $100] = $1,250

b. Total additional paid in capital = $791,250

c. Therefore, Additional paid in capital from common stock [b - a] = $790,000

d. Number of Common stock issued (From question - 19) = 100,000 shares

e. Additional paid in capital per share [c ÷ d] = $7.9

f. Par value of common stock = $0.10

Therefore, issue price per common stock [e + f] = $8

Question 21: Answer is $70,900

a. Beginning Retained earnings = $652,400

b. Net income during the current year = $268,500

c. Total retained earnings before dividends [a + b] = $920,900

d. Closing retained earnings = $850,000

Dividend declared [c - d] = $70,900

  

Question 22: Answer is 5,000 shares

Treasury stock value = $60,000

Purchase price = $12 per share

number of treasuy shares = $60,000 ÷ $12 = 5,000 common shares.

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