At June 30, 2011, Miles Specialty Company reported the following on its comparat
ID: 2575135 • Letter: A
Question
At June 30, 2011, Miles Specialty Company reported the following on its comparative balance sheets Click the icon to view the comparative balance sheet information.) Requirements 1. What is the par value of the company's common stock? 2. Did the company issue any new shares during the fiscal year ended June 30, 2011? 3. What was the approximate (average) issue price of the stock issued during the year ended June 30, 2011? 4. Did Miles Specialty Company earn net income (loss) during the year ended June 30, 2011? Assuming no dividends were declared and paid, how much was net income (loss)?Explanation / Answer
1. The par value of company's common stock is $15.
(calculated as issued capital amount /issued shares as on June 30,2011. =>$14,625 /975 =>$15).
2.Miles speciallity company issued 125 shares during fiscal year ended June 30, 2011.
(shares outstanding on june 30 ,2011 - shares outstanding on june 30,2010 =>975 -850 =>125).
3.Approximated issue price =>$95.80.
(addition to paid in capital during the year = $26,000 - 15,900 =>$10,100).
(addtion to issued capital = $14,625 -12,750 =>$1,875.)
(issue price = ($10,100 + $1875 / 125 shares issued =>$95.80).
It appears that Miles speciality earned a net income during the year ended june30,2017.
Miles speciality company earned a net income of $12,500.
(difference in retained earnings =>$42,000 - $29,500 =>$12,500).
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