Identify the numbers of shares of preferred stock that have been issued.

Question

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Answer 1

Question

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

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Answer 2

Question

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

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Answer 3

Question

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

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Answer 4

Question

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

Answer 6

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

Answer 7

Chapter 10, Problem 4PA

1.

To determine

Identify the numbers of shares of preferred stock that have been issued.

Answer 8

1.

Expert Solution

Answer to Problem 4PA

Number of preferred stock issued by the V World is 6,000,000 shares.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Compute the number of preferred stock issued by the V World:

Preferred stock issued =Preferred stock valuePar value per share= $6,000,000$1= 6,000,000 shares

Hence, the number of preferred stock issued by the V World is 6,000,000 shares.

Answer 13

2.

To determine

Identify the numbers of shares of common stock that have been issued.

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

Answer 14

2.

To determine

Identify the numbers of shares of common stock that have been issued.

Answer 15

2.

Expert Solution

Answer to Problem 4PA

Number of common stock issued by the V World is 30,000,000 shares.

Answer 16

2.

Expert Solution

Answer 17

2.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Compute the number of common stock issued by the V World:

Common stock issued =Common stock valuePar value per share= $30,000,000$1= 30,000,000

Hence, the number of common stock issued by the V World is 30,000,000 shares.

Answer 20

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

Answer 21

3.

To determine

Ascertain the average price per share at which the preferred share would have been issued.

Answer 22

3.

Expert Solution

Answer to Problem 4PA

Average price per share for which the preferred share would have been issued is $50.

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Step 1: Calculate total paid in capital for common stock.

Total paid in capitalfor common stock}=[Number of common shares issued×Issue price per share]=30,000,000×$30=900,000,000

Step 2: Calculate total paid in capital for preferred stock.

Total paid in capitalfor common stock}=[Total paid in capital−Total paid in capital for common stock]=$1,200,000,000−$900,000,000=$300,000,000

Step 3: Calculate the average price per share for which the preferred share would have been issued.

Average price per sharefor which the preferredshare would have been issued}=Total paid in capital for preferred stockNumber of preferred shares issued=$300,000,0006,000,000=$50

Hence, the average price per share for which the preferred share would have been issued is $50.

Answer 27

4.

To determine

Ascertain the amount of net income for the year.

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

Answer 28

4.

To determine

Ascertain the amount of net income for the year.

Answer 29

4.

Expert Solution

Answer to Problem 4PA

The amount of net income for the year is $68,000.

Answer 30

4.

Expert Solution

Answer 31

4.

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

Determine the amount of net income for the year as follows:

Net income =[(Ending retained earnings+ Dividends) − Beginning retained earnings] = ($288,000 + $30,000) − $250,000= ($318,000 − $250,000)= $68,000

Hence, the amount of net income for the year is $68,000.

Answer 34

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32

Hence, the average cost per share of the treasury stock acquired is $32.

Answer 35

5.

To determine

Ascertain the average cost per share of the treasury stock acquired.

Answer 36

5.

Expert Solution

Answer to Problem 4PA

Average cost per share of the treasury stock acquired is $32.

Answer 37

5.

Expert Solution

Answer 38

5.

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Average cost per treasury stock = Total value of treasury stockNumber of treasury stock held=$352,00011,000= $32