In: Accounting
The stockholders' equity section on the December 31 balance sheet of Hadley Corporation reported the following amounts:
Preferred Stock (par $50; authorized 10,000 shares, ? issued |
322,700 |
Additional Paid-in Capital, Preferred |
18,962 |
Common Stock (no-par; authorized 20,000 shares, issued and outstanding 5,300 shares) |
58,784 |
Retained Earnings |
160,732 |
Treasury Stock, 1,000 Preferred shares at cost |
50,355 |
What is the total paid in capital for Hadley Corporation?
Shepherd Company’s Stockholder’s equity is as follows:
Common Stock, $ 1 par $13,557
Additional PIC 20,089
Treasury Stock, $ 5 $ 2,269
How many treasury shares are owned by the company? Round to a whole number
Skyhawk Corporation’ charter authorized the following capital stock:
Preferred stock: 8 percent, par $11, authorized 10,000 shares.
Common stock: par $2.6, authorized 50,000 shares.
Since inception, Skyhawk sold 6,399 shares of the common stock at $6.4per share and 3,470 shares of the preferred stock at $18.
On the statement of stockholders' equity, Common Stock would be reported as $_____
Shepherd Company’s Stockholder’s equity is as follows:
Common Stock, $ 3 par $12,427
Additional PIC 20,631
Treasury Stock, $ 9 $ 2,019
What is the average issue price of the common stock? Round your answer to 2 decimal places!
A) Calculation of the total paid in capital for Hadley Corporation
Paid in capital is the payments received from investors in exchange for an entity's stock. This is one of the key components of the total equity of a business. Paid in capital can involve either common stock or preferred stock. Paid in capital includes both the par value of stock sold and the additional paid-in capital representing the price at which stock is sold above the par value. Thus, the formula for paid in capital is:
Paid in capital = Par value + Additional paid in capital
Preferred Stock (par $50; authorized 10,000 shares, | 322700 |
Additional Paid-in Capital, Preferred | 18962 |
Common Stock (no-par; authorized 20,000 shares, issued and outstanding 5,300 shares) | 58784 |
Total Paid In Capital | 400446 |
B) No. of share held under treasury Shares
$2269/$5=453.8 or 454 shares
C) Calculation of Common Stock would be reported
6,399 shares of the common stock at $2.6 per share = $16637.4
Common Stock would be reported $16637.4
D)Calculation of Average Issue Price of the common Stock
No. of common stock issued= Common Stock/ Face Value per Stock
=$12427/$3 = 4142.333
Total Paid in Capital =$12427+$20631= $33058
Average Issue Price= Total Paid in Capital/ No of Stock Issued
= $33058/4142.333 = 7.98 per Common Stock