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Unformatted text preview: = shares treasury of number cost treasury = shares 350 $2,000 = $5.71 5) Assuming that the preferred stock was issued for an average price of $43 per share, what is total stock holders’ equity? Total stock holders’ equity = Preferred stock + Common stock + Paid in capital in excess of par, preferred stock + Paid in capital in excess of par, common stock + Retained Earnings – Treasury stock =$240,000 + $318,000 + $18,000 + $129,000 +$86,000 – $2000 =$ 789,000 6) If net income for the year were $67,000 and if only dividends on preferred stock were paid, by how much would retained earnings increase? Retained Earnings = Net income – Dividend = $67,000 – (6% x $240,000) = $52,600 Retained Earnings will increased $ 52,600...
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- Spring '11
- Generally Accepted Accounting Principles, average price