The stockholders equity section of the balance sheet of Xanadu Fashions, Inc., at December 31, 2010 appears as follows:

Stockholders equity:

7% preferred stock, $100 par, callable at $105,

50,000 shares authorized, 40,000 shares issued.................................... $4,000,000

Common stock, $2 par, 600,000 shares authorized,

450,000 shares issued, of which 30,000 are held in treasury.................. 900,000

Additional paid-in capital:

From issuance of preferred stock........................................................ 640,000

From issuance of common stock........................................................ 1,890,000

From treasury stock transactions........................................................ 60,000

From common stock dividends.......................................................... 450,000

Total paid-in capital........................................................................ $7,940,000

Retained earnings ($240,000 equal to cost of treasury

stock is not available for dividends)..................................................... 3,600,000

$11,540,000

Less: Treasury stock (at cost: 30,000 common shares)............................ (240,000)

Total stockholders equity................................................................... $11,300,000

Answer the following questions based on the stockholders equity section given above. The company purchased no treasury stock before 2010.

1 Refer to the above data. What was the average issue price per share of preferred stock?

2 Refer to the above data. How many shares of common stock are outstanding?

3 Refer to the above data. A small stock dividend of 20,000 shares was declared and distributed during 2010. What was the market price per share on the date of declaration?

4 Refer to the above data. If Xanadu Fashions had reacquired 35,000 shares of treasury stock early in 2010, compute the price per share for which the reissued treasury stock was sold.

5 Refer to the above data. Assume all remaining treasury stock is reissued at a price of $24 per share in January of 2011. Prepare the journal entry to record this transaction: