The Water Valley Widget Co. was formed last year by selling 1.02 million shares of common stock. Currently, total equity is $44 million with a common stock account of $2.295 million and a retained earnings account of $4.22 million.

A. What was the original stock price?

B. What is the par value of the stock?

The Rankin Rotor Co. was organized last year when the firm sold 800,000 shares of stock at a price of $55 with a par value of $1.50. The company had net income of $7.8 million in its first year and paid dividends of $.67 per shaer. Construct the equity section of the balance sheet at the end of the first year properly labeled and in good accounting order.

Total paid in capital = 800,000 shares $55 per share = $44,000,000

Capital stock = 800,000 shares $1.50 per share = $1,200,000

Additional Paid In Capital = Total paid in capital - Capital stock = $44,000,000 - $1,200,000 = $42,800,000

Retained earnings = Net income - Dividends = $7,800,000 - $670,000 = $7,130,000

Total stockholders equity = $44,000,000 - $7,130,000 = 36,870,000

Shareholder's Equity
Common stock 1200000
Capital in excess of Par 42800000
Retained Earnings
Net income 7800000
Less: Dividend -536000
Total Shareholder's Equity 51264000

Common stock = 800,000 * 1.5 = 1,200,000

Capital in excess of par = (55-1.5) * 800,000 = 42,800,000

Please write it in keyboard words.