Terrific Comfort Specialists , Inc. reported the following stockholders ' equity on its balance sheet at June 30, 2018 Requirement 2. What is the par value per share of Terrific Comfort Specialists ' preferred stock ? **Stockholders' Equity****Paid-In Capital:**- **Preferred Stock—8%, ? Par Value:** - Authorized: 650,000 shares - Issued and Outstanding: 260,000 shares - Value: $1,300,000 - **Common Stock—$1 Par Value:** - Authorized: 5,000,000 shares - Issued and Outstanding: 1,300,000 shares - Value: $1,300,000 - **Paid-In Capital in Excess of Par—Common:** - Value: $2,800,000 **Total Paid-In Capital:** $5,400,000 **Retained Earnings:** $12,300,000 **Total Stockholders' Equity:** $17,700,000

Par Value of share: Par value is a per-share amount that will appear on some stock certificates and in the corporation's articles of incorporation. In the case of common stock, the par value per share is usually a very small amount such as $0.10 or $0.01 and it has no connection to the market value of the share of stock. The par value is sometimes referred to as the common stock's legal capital. When a corporation's common or preferred stock has a par value, the corporation's balance sheet will report the total par value of the shares issued for each class of stock. This will be shown as a separate amount in the paid-in capital or contributed to a capital section of stockholders' equity. Formula: Par value = (Total amount of shares issued - Additional paid-in capital) / Number of shares issuedPar value of preferred shares = (Total amount of shares issued - Additional paid-in capital) / Number of shares issued = ($1,300,000 - 0 ) / 260,000 shares = $5 per share

Answered: Data Table - X Stockholders' Équity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Terrific Comfort Specialists , Inc. reported the following stockholders ' equity on its balance sheet at June 30, 2018

Requirement 2. What is the par value per share of Terrific Comfort Specialists ' preferred stock ?

**Stockholders' Equity**

**Paid-In Capital:**

- **Preferred Stock—8%, ? Par Value:**
- Authorized: 650,000 shares
- Issued and Outstanding: 260,000 shares
- Value: $1,300,000

- **Common Stock—$1 Par Value:**
- Authorized: 5,000,000 shares
- Issued and Outstanding: 1,300,000 shares
- Value: $1,300,000

- **Paid-In Capital in Excess of Par—Common:**
- Value: $2,800,000

**Total Paid-In Capital:** $5,400,000

**Retained Earnings:** $12,300,000

**Total Stockholders' Equity:** $17,700,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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