Fall River Specialties, Inc., reported the following statement of stockholders equity for the year ended October 31,

Question:

Fall River Specialties, Inc., reported the following statement of stockholders€™ equity for the year ended October 31, 2012:

Requirements
Answer these questions about Fall River Specialties€™ stockholders€™ equity transactions.
1. The income tax rate is 30%. How much income before income tax did Fall River Specialties report on the income statement?
2. What is the par value of the company€™s common stock?
3. At what price per share did Fall River Specialties issue its common stock during the year?
4. What was the cost of treasury stock sold during the year? What was the selling price of the treasury stock sold? What was the increase in total stockholders€™ equity?
5. Fall River Specialties€™ statement of stockholders€™ equity lists the stock transactions in the order in which they occurred. What was the percentage of the stock dividend?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...