Chapter 11 - E11-7 The stockholders' equity section on the December 31 balance sheet of Chemfast...

Chapter 11 - E11-7

The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts:


Contributed Capital
Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock)	$	98,000
Additional Paid-in Capital, Preferred		12,740
Common Stock (no-par; authorized 20,000 shares, issued and outstanding 5,700 shares)		552,900
Retained Earnings		27,000
Treasury Stock, 1,000 Preferred shares at cost		9,350

Assume that no shares of treasury stock have been sold in the past.

Required:

Complete the following statements. (Decreases should be indicated by a minus sign. Round per share to 2 decimal places.)


1.	The number of shares of preferred stock issued was
2.	The number of shares of preferred stock outstanding was
3.	The average issue price of the preferred stock was	per share
4.	The average issue price of the common stock was
5.	The treasury stock transaction increased (decreased) stockholders’ equity by
6.	The treasury stock cost	per share
7.	Total stockholders’ equity is

Expert Solution

All working forms part of the answer

No.		Working	Amount [Answers’
1	The number of shares of preferred stock issued was	[$98000/$20 par]	4900
2	The number of shares of preferred stock outstanding was	[4900 shares - 1000 TS]	3900
3	The average issue price of the preferred stock was	[(98000+12740)/4900]	$ 22.60 per share
4	The average issue price of the common stock was	[$552900/5700 shares]	$ 20.48 per share
5	The treasury stock transaction increased (decreased) stockholders’ equity by		$ (9,350.00)
6	The treasury stock cost	[$9350/1000shares]	$ 9.35 per share
7	Total stockholders’ equity is	[98000+12740+552900+27000-9350]	$ 6,81,290.00

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