Question

The stockholders' equity section on the December 31, 2012, 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) $108,000
Additional Paid-in Capital, Preferred 15,390
Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,200 shares) 632,400
Retained Earnings 32,000
Treasury Stock, 1,000 Preferred shares at cost 9,600
Assume that no shares of of treasury stock have been sold in the past. Complete the following statements (Amounts to be deducted should be indicated by a minus sign. Round "per share values" 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? (per share)

5. The treasury stock transaction increased (decreased) stockholders? equity by?

6. The treasury stock cost? (per share)

7. Total stockholders' equity is?

Answer 1

1. The number of Shares of Preferred Stock issued was

88000/20 = 4400

2. Number of shares outstanding was

4400 - 1000= 3400

3. Average issue price of the preferred stock was

(88000+10340)/4400= 22.35

4. Average issue price of the common stock was

(478400/5200)= 92

5. The treasury stock transaction decreased stock equity by 9100

6. The treasury stock cost (9100/1000)= 9.1

7. Total stockholder Equity is 589,640

Stockholders Equity

Capital stock

Preferred stock 88000

paid in capital in excess of par 10340

Common stock 478400

total paid in capital 576740

Retained Earnings 22000

total paid in capital & Retained earnings 598740

less Treasury stock -9100

total Stockholders Equity 589640