Reporting Stockholder’s EquityBooner Company began business this year and immediately sold 600.000 common shares for $18,000,000 cash and paid $1,000,000 in common dividends. At midyear, the firm brought back some of its own shapes. The company reports the following additional information at year end: Net Income $5,000,000Common stock at par $6,000,000Retained earnings beginning of the year $0Common shares authorized $1,000,000Common shares outstanding $ 550,000a. What was the average price of common shares when listed?b. What is the par value of the common?c. How much is the additional paid in capital account at the end of the year?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Reporting Stockholder’s Equity
Booner Company began business this year and immediately sold 600.000 common shares for $18,000,000 cash and paid $1,000,000 in common dividends. At midyear, the firm brought back some of its own shapes. The company reports the following additional information at year end:

Net Income $5,000,000
Common stock at par $6,000,000
Retained earnings beginning of the year $0
Common shares authorized $1,000,000
Common shares outstanding $ 550,000
a. What was the average price of common shares when listed?
b. What is the par value of the common?
c. How much is the additional paid in capital account at the end of the year?

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