Preferred stock, $50 par value, 5,000 shares authorized, ? shares issued $300,000 Common stock, ? par, 10,000 shares authorized, 7,000 shares issued 70,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 630,000 Additional paid-in capital—Treasury stock 1,200 Total contributed capital $1,010,200 Retained earnings 46,000 Treasury stock, preferred, 100 shares (3,200) Total stockholders’ equity $ ? Required: Determine the following items based on Eldon's balance sheet. Round all calculations except per-share amounts to the nearest whole number; round per-share amounts to the nearest cent. 1. The number of shares of preferred stock issued fill in the blank 1 shares 2. The number of shares of preferred stock outstanding fill in the blank 2 shares 3. The average per-share sales price of the preferred stock when issued $fill in the blank 3 per share 4. The par value of the common stock $fill in the blank 4 per share 5. The average per-share sales price of the common stock when issued $fill in the blank 5 per share 6. The cost of the treasury stock per share $fill in the blank 6 per share 7. The total stockholders' equity $fill in the blank 7 8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value $fill in the blank 8 per share
Analysis of
The Stockholders' Equity section of the December 31, 2017,
| Preferred stock, $50 par value, 5,000 shares authorized, ? shares issued |
$300,000 |
| Common stock, ? par, 10,000 shares authorized, 7,000 shares issued |
70,000 |
| Additional paid-in capital—Preferred | 9,000 |
| Additional paid-in capital—Common | 630,000 |
| Additional paid-in capital— |
1,200 |
| Total contributed capital | $1,010,200 |
| 46,000 | |
| Treasury stock, preferred, 100 shares | (3,200) |
| Total stockholders’ equity | $ ? |
Required:
Determine the following items based on Eldon's balance sheet. Round all calculations except per-share amounts to the nearest whole number; round per-share amounts to the nearest cent.
1. The number of shares of preferred stock issued
fill in the blank 1 shares
2. The number of shares of preferred stock outstanding
fill in the blank 2 shares
3. The average per-share sales price of the preferred stock when issued
$fill in the blank 3 per share
4. The par value of the common stock
$fill in the blank 4 per share
5. The average per-share sales price of the common stock when issued
$fill in the blank 5 per share
6. The cost of the treasury stock per share
$fill in the blank 6 per share
7. The total stockholders' equity
$fill in the blank 7
8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value
$fill in the blank 8 per share
Feedback Area
1) The preferred stock account reflects total par value for all
2) Outstanding shares are the number of shares issued less the number of shares held as treasury stock.
3) Total proceeds received from preferred stock issuance are reported in two accounts: a) the par value is in the preferred stock account, b) the excess (price received - par value) is in the related additional paid-in capital account.
4) The common stock account reflects total par value for all shares issued.
5) Total proceeds received from common stock issuance are reported in two accounts: a) the par value is in the common stock account, b) the excess (price received - par value) is in the related additional paid-in capital account.
6) The total cost of treasury stock is reported in the treasury stock account.
7) Consider all the components of stockholders' equity and remember that some may be treated as a deduction rather then an addition.
8) Book value per share represents the rights of each share of stock to the net assets of the company.
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