The following information applies to the questions displayed below.] Shown below
ID: 2520385 • Letter: T
Question
The following information applies to the questions displayed below.] Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, 2018: 6% cumulative preferred stock, $100 par, 10,000 shares authorized, 6,000 shares issued $ 600,000 Common stock, $3 par, 500,000 shares authorized, 300,000 shares issued and outstanding $ 900,000 Additional paid-in capital: preferred stock $ 60,000 Additional paid-in capital: common stock $ 1,900,000 Retained earnings $ 1,090,000 Dividends have been declared and paid for 2018. The average issue price per share of Grant's preferred stock was: Select one: a. $112. b. $100. c. $110. d. $66.
Explanation / Answer
Grant Corporation
Determination of average issue price per share of Grant’s preferred stock:
Par value $100
Value of issued shares$600,000
Add: Additional paid-in capital$60,000
Total value of preferred shares issued$660,000
Number of preferred shares issued6,000
Average price of each preferred share$660,000/6,000 = $110 per share
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