Question

The following information is from the December 31, 2017 balance sheet of Jackson Corporation

Preferred Stock, $100 par $260,000
Paid In Capital in Excess of Par - Preferred 14,000
Common Stock, $1 par 77,000
Paid - In Capital in Excess of Par - Common 213,000
Retained Earnings 58,600
Total Stockholders' Equity $622,600
What is the average issue price of the preferred stock shares? (Round answers to the nearest dollar.)
A. $104
B. $105
C. $167
D. $100

Answer 1

Answer:Average issue price = $105--b

Step-by-step explanation:

Preferred stock , $100 par = $260,000

number of shares issued =Preferred stock / par value preferred stock= =$260,000 / $100 = 2,600 shares

Paid in capital in excess of par = total issued price - preferred stock

total issued value = paid in capital in excess of par preferred stock + preferred stock = 14,000 + 260,000=$274,000

Average issue price = Total issue price / number of shares issued = $274,000/ 2600= 105.38 = $105