Question

The market price of a share of common stock at the time of issuance was $19.50, while the market price of a preferred share of stock at the time of issuance was $32. The company paid $12.50 per share for its treasury stock.

Required:

Determine the missing amount in the stockholders' equity section of the balance sheet set forth below.


STOCKHOLDERS EQUITY
.... Contributed Capital:
.... Preferred Stock, $2.00 par value, authorized 1,000,000 shares;
issued 300,000 shares.......................................................................
$ (a)
.... Additional Paid-in Capital.................................................................... (b)
.... Common Stock, $3.00 par value, authorized 40,000,000 shares;
issued 25,600,000 shares..................................................................
(c)
.... Additional Paid-in Capital.................................................................... (d)
.... Total Contributed Capital................................................................. (e)
.... Retained Earnings.................................................................................... 305,683,000
.... Treasury Stock (10,000 shares, at cost)................................................... (f)
Total Stockholders' Equity............................................................................ $ (g)

(a) ________

(b) ________

(c) ________

(d) ________

(e) ________

(f) ________

(g) ________

Answer

This answer is hidden. It contains 1287 characters.