The stockholders\' equity section of Kay Corporation at December 31, 2005 includ
ID: 2469387 • Letter: T
Question
The stockholders' equity section of Kay Corporation at December 31, 2005 included the following accounts:
Preferred stock (9%, $40 par, 6,000 shares issued & outstanding) ........ $240,000
Common stock ($8 par, 65,000 shares issued, 61,000 shares outstanding) .. 520,000
Paid-in capital – preferred stock ....................................... ?
Paid-in capital – common stock .......................................... 584,000
Retained earnings ....................................................... 152,000
Treasury stock (4,000 shares at $15 cost) .............................. 60,000
Assume the preferred stock was issued for an average price of $48 per share. Calculate the total stockholders' equity at December 31, 2005. Do not use decimals in your answer.
Explanation / Answer
Shareholder's Equity :-
Common shareholders's equity
Common Stock 61000 shares outstanding $ 584,000
(Paid in Capital)
Retained Earning $ 152,000
Total Equity shareholder equity (a) $ 736,000
Preferred Stock Capital
9% preferred stock paid in capital (b) $ 288,000
Treasury Stock (c) $ 60,000
Total shareholder's equity (a)+(b)+(c) $ 1,084,000
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