The following are the stockholders equity accounts appearing on the balance shee

Question

The following are the stockholders equity accounts appearing on the balance sheet of a corporation on October 31, 2015. Preferred stock, $50 par value...................$125,000 Paid-in-capital in excess of par on preferred.............$30,000 Common stock, $10 par value........................$300,000 Paid-in-capital in excess of par on common...............$270,000 Retained earnings..............$225,000 How many shares of common stock have been issued? What was the average issuance price of the common stock? How many shares of preferred stock have been issued? What was the average issuance price of the preferred stock? What is the total paid-in-capital? What is total stockholders equity?

Explanation / Answer

Stocks shares Value $ Average issuance price Common stock $ 10 Par value    3,000      30,000 Additional paid in capital - common stock    270,000 100 (3000*10+270000)/3000 Retained earnings    225,000 Preferred Stock $50 par value    2,500    125,000 Additional paid in capital - Preferred stock    125,000 100 (2500*50+125000)/2500 Total paid up capital    550,000 total stockholders equity    775,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.