StockholdersEQUITY - into Additional Paid-In Capital. The...

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Stockholders' equity: General questions Jenkins Company has the following partially completed stockholders' equity section of the 2009 balance sheet. Some of the information is missing: The preferred stock was originally issued at $128 per share. The common stock was originally issued at $136 per share. Required: (a) Calculate the number of issued shares of common stock. (b) Calculate total additional paid-in capital . (c) Calculate total stockholders' equity.
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(a) Calculate the number of shares of common stock issued. The amount in the Common Stock account is equal to the total par value of shares issued. To determine the number of shares issued, divide the total par value by the par value per share . Number of shares of common stock issued = Total par value of common stoc Par value per share = $1,066,000 13 = 82,000 (b) Calculate total additional paid-in capital . When stock is issued, the amount paid for the stock in excess of par value is entered
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Unformatted text preview: into Additional Paid-In Capital. The problem states the original issuance price per share. Subtracting the par value from the original issuance price will give the excess of par value per share . Multiplying this excess by the number of shares issued will give the total that is recorded in Additional Paid-In Capital. Common Stock: Additional Paid-In Capital = Excess of common stock over par value Number of shares of common stock issued = $123 82,000 = $10,086,000 Preferred Stock : Additional Paid-In Capital = Excess of preferred stock over par value Number of shares of preferred stock issued = $58 10,000 = $580,000 Total Additional Paid-in Capital: Total additional paid-in capital = Common stock + Preferred stock = $10,086,000 + $580,000 = $10,666,000 (c)...
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StockholdersEQUITY - into Additional Paid-In Capital. The...

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