The stockholders’ equity section of the balance sheet for Gator Company at Decem

Question

The stockholders’ equity section of the balance sheet for Gator Company at December 31, 2014, is as follows

What is the number of common stock shares outstanding?

What was the average issue price per share (price for which the stock was issued) of the common stock?

The stockholders’ equity section of the balance sheet for Gator Company at December 31, 2014, is as follows

     Stockholders’ Equity   Paid-in capital      Preferred stock, ? par value, 4% cumulative,        270,000 shares authorized, 57,000 shares issued
       and outstanding $ 570,000      Common stock, $25 stated value, 320,000 shares
       authorized, 57,000 shares issued and ? outstanding 1,425,000      Paid-in capital in excess of par—Preferred 47,000      Paid-in capital in excess of stated value—Common 114,000   Total paid-in capital 2,156,000   Retained earnings 420,000   Treasury stock, 6,000 shares (42,000 )      Total stockholders’ equity $ 2,534,000

What is the number of common stock shares outstanding?

What was the average issue price per share (price for which the stock was issued) of the common stock?

Explanation / Answer

number of stocks outstanding 57,000 - 6000 = 51,000

b) issue price = (1425,000 + 114,000) / 57,000

                         = $27 per share

number of stocks outstanding 57,000 - 6000 = 51,000

b) issue price = (1425,000 + 114,000) / 57,000

                         = $27 per share

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