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Several accou amou Franchise, accountil ecords appear below: Preferred stock, 7%, $40 par, 600 shares authorized, cumulative, 300 shares issued $ 9,600 Common treasury stock, 200 shares at cost Additional paid-in capital-preferred Retained earnings 16,000 12,800 19,200 3,200 Common stock, $4 par value, authorized 4,000 shares Additional paid-in capital – common 36,800 The market price of the stock on December 31 was $20 per share. All the shares of common stock were issued on May 1, two years earlier.

Several accou amou Franchise, accountil ecords appear below: Preferred stock, 7%, $40 par, 600 shares authorized, cumulative, 300 shares issued $ 9,600 Common treasury stock, 200 shares at cost Additional paid-in capital-preferred Retained earnings 16,000 12,800 19,200 3,200 Common stock, $4 par value, authorized 4,000 shares Additional paid-in capital – common 36,800 The market price of the stock on December 31 was $20 per share. All the shares of common stock were issued on May 1, two years earlier.

FINANCIAL ACCOUNTING
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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How much was each share of common stock initially sold for?

Several accounts and amounts from Favorite Franchise, Inc.'s accounting records appear below: Preferred stock, 7%, $40 par, 600 shares authorized, cumulative, 300 shares issued $ 9,600 Common treasury stock, 200 shares at cost Additional paid-in capital-preferred Retained earnings 16,000 12,800 19,200 Common stock, $4 par value, authorized 4,000 shares Additional paid-in capital – common 3,200 36,800 The market price of the stock on December 31 was $20 per share. All the shares of common stock were issued on May 1, two years earlier.
Transcribed Image Text:Several accounts and amounts from Favorite Franchise, Inc.'s accounting records appear below: Preferred stock, 7%, $40 par, 600 shares authorized, cumulative, 300 shares issued $ 9,600 Common treasury stock, 200 shares at cost Additional paid-in capital-preferred Retained earnings 16,000 12,800 19,200 Common stock, $4 par value, authorized 4,000 shares Additional paid-in capital – common 3,200 36,800 The market price of the stock on December 31 was $20 per share. All the shares of common stock were issued on May 1, two years earlier.
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