E11-28 Hoang Duong - = shares treasury of number cost...

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E11-28 (page 544) Analysis of Stockholders’ Equity 1) What is the dollar amount to be reported for preferred stock? Preferred stock = 6% x $40 x 10,000 shares = $240,000. 2) What is the average price for which common stock was issued? Average price for issued common stock = issued shares common of number stock common par, of excess in capital in paid + stock common share = shares 53,000 $129,000 $318,000 + = $8.43 3) If preferred stock was issued at an average price of $43 per share, what amount should appear in the paid-in capital excess of par, preferred stock account Paid-in capital in excess of par, preferred stock = (Average Price – Par value) x 6000 shared issued = ($43 – $40) x 6000 shares = $18,000 4) What is the average cost per share of treasury stock Average cost per share of treasury stock
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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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E11-28 Hoang Duong - = shares treasury of number cost...

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