Question

The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information:

Common stock, $3 par value
$150,000
Additional paid-in capital—common
850,000
​
There have been two issues of stock since the corporation began business. The average issue price per share of stock was

a.
$3.00.

b.
$17.00.

c.
$20.00.

d.
Not enough information to determine.

Answer 1

The average issue price per share of stock for the Sea Turtle Company is $20.00. This is calculated by adding the par value of the common stock and the additional paid-in capital, and then dividing by the number of shares issued.

Step-by-step explanation:

The question relates to calculating the average issue price per share of stock for the Sea Turtle Company. To determine this, we must take into account the value of common stock (at par value) and additional paid-in capital. The common stock has a par value of $3 per share, with a total value of $150,000. This indicates that 50,000 shares have been issued ($150,000 divided by $3 per share). The additional paid-in capital is $850,000. To find the average issue price per share, we add the par value amount to the additional paid-in capital and then divide by the number of shares issued, yielding the calculation ($150,000 + $850,000) / 50,000 shares = $20.00 per share.