The market price of a share of common stock at the time of issuance was $16.00,
ID: 2473045 • Letter: T
Question
The market price of a share of common stock at the time of issuance was $16.00, while the market price of a preferred share of stock at the time of issuance was $25.50. The company paid $10.50 per share for its treasury stock.
The market price of a share of common stock at the time of issuance was $16.00, while the market price of a preferred share of stock at the time of issuance was $25.50. The company paid $10.50 per share for its treasury stock.
Required:Determine the missing amount in the stockholders' equity section of the balance sheet set forth below.(Input all amounts as positive values.)
Explanation / Answer
Statement showing computations Particulars Amount Preferred Stock ,$2 Par Value, Authorised 1000,000 Shares, Issued 500,000 Shares = 500,000*2 1,000,000.00 Additional Paid in capital= 500,000*23.5 11,750,000.00 Common Stock ,$3 Par Value, Authorised 40,000,000 Shares, Issued 15,500,000 Shares= 40m*3 120,000,000.00 Additional Paid in capital = 40m*13 520,000,000.00 Retained earnings 206,783,000.00 859,533,000.00 Treasury Stock at cost (10,000 Shares) = 10,000*10.5 105,000.00 Total stockholders equity 859,428,000.00
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