Homework SourseThe stockholders equity section of the balance sheet of Cram
The stockholders\' equity section of the balance sheet of Crammond Corporation at December 31, appears as follows:
What was the average issue price per share of preferred stock?
| Stockholders\' Equity | |||
| $2 preferred stock, $100 par, 10,000 shares authorized | $ | 670,000 | |
| Common stock, $1 par, 100,000 shares authorized | 72,000 | ||
| Additional Paid-in Capital: | |||
| From issuance of preferred stock | 165,000 | ||
| From issuance of common stock | 710,000 | ||
| Total paid-in capital | 1,617,000 | ||
| Retained earnings | 835,000 | ||
| Total Stockholders\' equity | $ | 2,452,000 | |
| |
Solution
The average issue price per share of preferred stock was:
= ($670,000/6,700) + ($165,000/6,700)
= $124.63
