c. Calculate the number of shares of common stock that are issued and the number of sha outstanding. d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common stock of $234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the number of shares that were sold and the selling price per share.
c. Calculate the number of shares of common stock that are issued and the number of sha outstanding. d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common stock of $234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the number of shares that were sold and the selling price per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello, I need help with "number of shares issued" "number of shares sold" and "selling price per share"
Transcribed Image Text:Francis Inc. has the following stockholders' equity section in its November 30, 2019, balance sheet:
Paid-in capital:
12% preferred stock, $60 par value, 1,000 shares authorized,
issued, and outstanding
Common stock, $8 par value, 50,000 shares authorized, ? shares
issued, ? shares outstanding
Additional paid-in capital on common stock
Additional paid-in capital from treasury stock
Retained earnings
Less: Treasury stock, at cost (1,000 shares of common)
120,000
270,000
6,500
48,500
(9,000)
Total stockholders' equity
Required:
a. Calculate the amount of the total annual dividend requirement on preferred stock.
b. Calculate the amount that should be shown on the balance sheet for preferred stock.
c. Calculate the number of shares of common stock that are issued and the number of shares of common stock that are outstanding.
d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common stock of
$234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the number of
shares that were sold and the selling price per share.
e. Choose the transaction that resulted in the additional paid-in capital from treasury stock.
f. The retained earnings balance on January 1, 2019, was $45,150. Net income for the past 11 months was $12,000. Preferred stock
dividends for all of 2019 have been declared and paid. Calculate the amount of dividends on common stock during the first 11
months of 2019.
Complete this question by entering your answers in the tabs below.
Req A and B
Req C and D
Req E
Reg F
c. Calculate the number of shares of common stock that are issued and the number of shares of common stock that are
outstanding.
d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common
stock of $234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the
number of shares that were sold and the sellina price per share.
Next
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Transcribed Image Text:d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on commo
$234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the numbe
shares that were sold and the selling price per share.
e. Choose the transaction that resulted in the additional paid-in capital from treasury stock.
f. The retained earnings balance on January 1, 2019, was $45,150. Net income for the past 11 months was $12,000. Preferred
dividends for all of 2019 have been declared and paid. Calculate the amount of dividends on common stock during the firs
months of 2019.
Complete this question by entering your answers in the tabs below.
Req A and B
Req C and D
Req E
Req F
C. Calculate the number of shares of common stock that are issued and the number of shares of common stock that are
outstanding.
d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common
stock of $234,375. The only transaction affecting these accounts during 2019 was the sale of common stock. Calculate the
number of shares that were sold and the selling price per share.
Show less A
60,000
С.
Number shares issued
14,000
Number shares outstanding
60,000
d.
Number of shares sold
Selling price per share
Req E >
Req A and B
Expert Solution
Basics
Number of shares issued = Value of shares issued/ Par value of shares
Number of shares outstanding = Number of Authorized shares less Number of issued shares
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