Question
The stockholders' equity section of the balance sheet of Our Stock Inc., on December 31, 2xxx, appears as follow: Stockholder's Equity 6% Cumulative preferred stock,
The stockholders' equity section of the balance sheet of Our Stock Inc., on December 31, 2xxx, appears as follow: Stockholder's Equity 6% Cumulative preferred stock, $100 par, 50,000 share authorized, ????? shares issued $1,800,000 Common stock, $10 par, 500,000 shares authorized, 100,000 issued of which ????? is held as treasury $1,000,000 Additional Paid In-Capital For Issuance of Preferred Stock $444,000 For Issuance of Common Stock $3,835,000 Total Paid in Capital $7,079,000 Retained earnings ($160,000 equal to cost of treasury stock not available for dividends) $1,280,000 $8,359,000 Less Treasury stock (at cost 4,000 common shares) ($160,000) Total stockholder's equity $8,199,000 Answer the following questions based on the stockholders' equity section given above. Each question is a separate situation, unless otherwise indicated. (Show your work) answer Computation a What is the total dollar amount paid annually as dividends to preferred stockholders? b What was the average issue price per share of preferred stock? c What was the average issue price per share of common stock? -d How many shares of common stock are outstanding? e What is the book value per share of the common stock? f If all the treasury stock is reissued at a price of $45 per share, what amount will be credited to the Additional Paid-In Capital: Treasury Stock Transactions account?
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