Mgmt_200_Spring_2008_solutions_4-7-08(4,17)

Mgmt_200_Spring_2008_solutions_4-7-08(4,17) - treasury...

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Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Solutions to class assignment for April 7, 2008 E11–2. 1. The number of authorized shares is specified in the corporate charter: 250,000. 2. Issued shares are the shares sold to the public: 200,000 3. Issued shares 200,000 Treasury stock 20,000 Outstanding shares 180,000 E11–6. 1. Number of shares issued: $150,000 ÷ $1 = 150,000 2. Number of shares outstanding: 150,000 shares issued minus 1,000 shares held as
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Unformatted text preview: treasury stock = 149,000 . 3. Average sales price per share of stock when issued: ($150,000 + $200,000) 150,000 shares = $2.33 . 4. Decreased corporate resources by $50,000 . 5. Treasury stock transactions decreased stockholders equity by $50,000 (same as the decrease in corporate resources in 4 above). 6. Treasury stock cost per share: $50,000 1,000 shares = $50.00 . 7. Total stockholders equity: $550,000 ....
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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