Answered

IDNLearn.com provides a collaborative environment for finding and sharing knowledge. Ask any question and receive accurate, in-depth responses from our dedicated team of experts.

Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through 50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the answer to question 45, and so on:

Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000
Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $850,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000

The average issue price per share of preferred stock must have been: _________

Sagot :

Tundexiidn

Answer:

$70.00

Explanation:

Average issue price per share of preferred stock = (Preferred stock capital + Contributed capital in excess of par value, Preferred Stock) / Number of shares issues & outstanding

Average issue price per share of preferred stock = ($100,000 + $250,000) / 5,000 shares

Average issue price per share of preferred stock = $350,000 / 5,000 shares

Average issue price per share of preferred stock = $70.00

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com is dedicated to providing accurate answers. Thank you for visiting, and see you next time for more solutions.