Question

Gordon Company reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value per share $98,000 Additional Paid-in Capital , Common Stock 600,000 Retained Earnings 900,000 Total Stockholders' Equity $1,598,000 What was the average selling price for the common stock issued (rounded to the nearest cent)

Answer 1

$0.71

Step-by-step explanation:

Calculation to determine What was the average selling price for the common stock issued

Using this formula

Common stock issued avarage selling price=

Paid-in Capital in Excess of Par-Common÷Common Stock par value per share

Let plug in the formula

Common stock issued avarage selling price=($600,000+$98,000)/($98,000÷$0.10)

Common stock issued avarage selling price=$698,000/$980,000

Common stock issued avarage selling price=$0.71

Therefore the average selling price for the common stock issued is $0.71