Need help figuring out p3-11 Changes in stockholders\' equity Listed are the equ

Question

Need help figuring out p3-11

Changes in stockholders' equity Listed are the equity sections of balance sheets years 2014 and 2015 as reported by Mountain Air Ski Resorts, Inc. The overal value of stockholders' equity has risen from $2,000,000 to $7,500,000. Use statements to discover how and why that happened. The company paid total dividends of $200,000 during fiscal 2015. What was Mountain Air's net income for fiscal 2015? How many new shares did the corporation issue and sell during the year? At what average price per share did the new stock sold during 2015 sell? At what price per share did Mountain Air's original 500,000 shares sell?

Explanation / Answer

Particulars 2014 2015 Difference Retained Earnings      1,000,000.00    1,500,000.00        500,000.00 Dividends        200,000.00 Net Income        700,000.00 No of shares          500,000.00    1,500,000.00    1,000,000.00 Increase in Common Stock          500,000.00    1,500,000.00    1,000,000.00 Increase in paid in capital in excess of par          500,000.00    4,500,000.00    4,000,000.00 Total Capital Issued in 2015    5,000,000.00 Total shares issued in 2015    1,000,000.00 Average price of share in 2015                     5.00 Original Common Stock          500,000.00 Capital in excess of par          500,000.00 Total Capital      1,000,000.00 Total Shares          500,000.00 Average price in 2014                       2.00

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