P2-11 & P2-26 -...

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A. What was Mountain Air’s net income for fiscal 2009? B. How many new shares did the corporation issue and sell during the year? C. At what average price per share did the new stock sold during 2009 sell? D. At what price per share did Mountain Air’s original 500,000 shares sell? A. Retained earnings (RE) = Net income - Dividends 1500000=  x - 200,000 x = 1500000 200,000 x= 1,700,000 Net Income= 1,700,000 B. How many new shares did the corporation issue and sell during the year? New Shares=  the change in outstanding shares between the two years Outstanding (2009)=  1,500,000 Outstanding (2008)=  500,000 New Shares=  1,000,000 ` C. At what average price per share did the new stock sold during 2009 sell? Average price per share = change in paid-in-capital account and the change in outstandin Change in paid-in-capital account= 4,500,000 Change in outstanding shares= 1,500,000 New shares issued= 1,000,000 Average price per share =   $3.00  D. At what price per share did Mountain Air’s original 500,000 shares sell? Original issuance price= Paid-in-capital account + common stock account/ by the original  Paid-in-capital account= 4,500,000 Common stock account = $1.00  Original shares =  500,000 Price per share = 9 (P2-11.)  Changes in stockholders’ equity Listed are the equity sections of balance sheets for years  2008 and 2009 as reported by Mountain Air Ski Resorts, Inc. The overall value of stockholders’ 
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P2-11 & P2-26 -...

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