Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer questions 1-5. The Stockholder's Equity accounts of a corporation on January 1,2017, were as follows: Preferred Stock(6%, $200 par,

image text in transcribed

Use the following information to answer questions 1-5. The Stockholder's Equity accounts of a corporation on January 1,2017, were as follows: Preferred Stock(6%, $200 par, cumulative, 4,000 shares authorized) Common Stock ($5 par, 1,000,000 shares authorized) Additional Paid in Capital - Preferred Additional Paid in Capital - Common Retained Earnings Treasury Stock- Common (7,000 shares $ 470,000 1,350,000 89,300 6,480,000 1,657,000 126,000 During 2017, the corporation had the following transactions and events relating to its stockholders equity Issued 30,000 shares of common stock in exchange for property. On this date the stock was trading for $15 per share. an. Feb. 21 Issued 400 shares of preferred stock at $250 per share Mar. 21 Sold 1,000 shares of treasury stock - common for $21 per share Nov. 14Purchased 2,000 shares of common stock for the treasury at a cost of $22,000 Dec. 31Determined that net income for the year was $318,000. Dividends were declared and paid during December. These dividends included a $0.25 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears. 1. As of Dec. 31, 2017, what is the average selling price of the preferred stock? A. $225.00 B. $280.55 C. $200.00 D. $239.75 E. $207.27 2. How many shares of common stock are outstanding as of December 31,2017? A. 299,000 B.300,000 C. 303,400 D. 301,000 E.292,000 3. What is the Total Contributed Capital as of December 31, 2017? B. $10,811,300 C. $10,681,300 D. $ 8.932400 4. What is the balance in Retained Earnings as of December 31, 2017? A. $1,800,000 B. $1,869,000 C. $1,867,250 D. $1,975,000 E. $1,445,000 5. What it total stockholder's equity as of December 31,2017? A. $10,941.300 B. $10,681,300 C. $10,811,300 E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin Arens, Randal J. Elder

14th Global Edition

0273755013, 978-0273755012

More Books

Students also viewed these Accounting questions

Question

What are the outcomes the client wants?

Answered: 1 week ago

Question

What has been done before?

Answered: 1 week ago