Honda Motor Company is the largest producer of motorcycles in the world, as well as a major auto manufacturer. Honda included the following items in its 2011 balance sheet (in millions of Japanese Yen, ¥): Common stock-authorized 7,086,000,000 shares; issued 1,811,428,430 shares Capital surplus* *Honda uses the term "capital surplus" instead of the preferred terms, additional paid-in capital or capital in excess of par value. ¥ 86,067 172,529 1. What is the par value of Honda's common stock? 2. What was the average price per share paid by the original investors for the Honda common stock? 3. How do your answers compare with the ¥3,000 market price of the stock at the end of fiscal 2011? Comment briefly.
Honda Motor Company is the largest producer of motorcycles in the world, as well as a major auto manufacturer. Honda included the following items in its 2011 balance sheet (in millions of Japanese Yen, ¥): Common stock-authorized 7,086,000,000 shares; issued 1,811,428,430 shares Capital surplus* *Honda uses the term "capital surplus" instead of the preferred terms, additional paid-in capital or capital in excess of par value. ¥ 86,067 172,529 1. What is the par value of Honda's common stock? 2. What was the average price per share paid by the original investors for the Honda common stock? 3. How do your answers compare with the ¥3,000 market price of the stock at the end of fiscal 2011? Comment briefly.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6
Transcribed Image Text:1-49 Presenting Paid-in Capital
Honda Motor Company is the largest producer of motorcycles in the world, as well as a major
auto manufacturer. Honda included the following items in its 2011 balance sheet (in millions of
Japanese Yen, ¥):
Common stock-authorized 7,086,000,000 shares;
issued 1,811,428,430 shares
Capital surplus*
*Honda uses the term "capital surplus" instead of the preferred terms, additional
paid-in capital or capital in excess of par value.
¥ 86,067
172,529
1. What is the par value of Honda's common stock?
2. What was the average price per share paid by the original investors for the Honda common stock?
3. How do your answers compare with the ¥3,000 market price of the stock at the end of fiscal
2011? Comment briefly.
▶O
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education