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The market price of a share of common stock at the time of issuance was $19.50,

ID: 2748584 • Letter: T

Question

The market price of a share of common stock at the time of issuance was $19.50, while the market price of a preferred

stockholders' equity information below.

Stockholders' equity: Preferred stock, $2.00 par value, 1,000,000 authorize 300,000 issued........ Ga) (b) Additional paid-in capital Common stock, $3.00 par value, 40,000,000 authorized: 25,600,000 issued (c) Additional paid-in capital Od) Retained earnings 305.683.000 Ge) Of) Less: treasury stock, at cost (10,000 shares Total stockholders' equity............................................................. (g)

Explanation / Answer

Statement of Stockholder's equity

(a) Preffered stock (300000x2) 600000 (b) Additional paid in capital -Prefferd stock (300000 x (32-2)) 9000000 (c) Common stock (25600000 x 3) 76800000 (d) Additional apid in capital - common stock (25600000 x 16.50) 422400000 (e) Retained Earnings (Balancing Figure) (203117000) 305683000 (f) Less: Treasury stock at cost (10000 x $12.50) $125000 (g) Total Stock holder's equity 305558000