You are given the following information: Capital Stock, USD 80,000 (USD 80 par)Paid-In Capital in Excess of Par Value—Common, USD 200,000and Retained Earnings, USD 400,000. Assuming only one class of stock, the book value per share is:($80,000 + $200,000 + 400,000) = $680,000 $680,000 / 1,000 shares = $680 per share
Assuming there is only one class of stock and that all stock was issued on the same day, what was the price of each share?(80,000 / 80) = 1,000 shares issued80,000 + 200,000 = 280,000 total received for all shares issued280,000 / 1,000 = 280 money received for one shareABC inc, was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing 240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid in cash dividend of $1,800. During the year, the company also borrowed an additional $320,000 from the bank. What was total assets on ABC’s balance sheet at the end of the year last year.
Chapter 13:13.16.1 True-falseIndicate whether each of the following statements is true or false.FALSE - The retained earnings balance of a corporation is part of its paid-in capital.ANSWER: The paid-in capital of a corporation only includes capital contributed bystockholders or others. Thus, it does not include retained earnings.
**Common stock shares issued exceed common stock shares outstanding, which statement would justify this fact? Purchase of treasury stock