Following is thestockholders' equitysection from ABC Company's balancesheet as of Dec 31,Yr 1: STOCKHOLDERS' EQUITYCommon stock: $0.45 par value,authorized 600,000shares; 175,000 shares issued: $78,750Additional paid-in capital: 532,000Retained earnings: 79,500Treasury stock: (180,000)Total stockholder's equity: $510,250a) At the time the common stock wassold, what was the cost of eachcommon stock sold?b) Compute the average price at whichABC Company issued its commonstock shares:c) Compute the number of commonstock shares outstanding as of Dec 31,Yr 1.

Issued stock = Par value + paid in capital Outstanding shares = Issued shares- Treasury stock

Answered: equity Following is the stockholders'…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The stockholders' equity section of Rakusin Corp. reflected the following in the capital stock subsection (all stock was issued on the same date): Common stock, par $10 $60,000 Additional paid-in-capital 15,000 What was the per-share selling price of the stock? $ _________
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