Bohannan Companys charter allows it to sell 400,000 shares of $4 par value common stock. So far,

Question:

Bohannan Company’s charter allows it to sell 400,000 shares of $4 common stock. So far, the firm has sold 80,000 shares for a total of $780,000. Just yesterday, the company reacquired 1,000 shares from a disgruntled shareholder at a price of $10 per share.
a. What is a charter and by whom is it issued?
b. What total amount of contributed capital should this company report in the stockholders’ equity section of its balance sheet?
c. What was the average selling price of each share of common stock?
d. How many shares of stock are outstanding?
e. What balance should be reported in stockholders’ equity for Common Stock?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...