Calculation of average issue price

Assignment Help Financial Accounting

Reference no: EM1315016

Calculation of average issue price and sale price of common stock.

The following items were shown on the balance sheet of Herman Corporation on December 31, 2008:
Stockholders' Equity
Paid-In Capital
Capital Stock

Common stock, $5 par value, 360,000 shares
authorized; ______ shares issued and ______ outstanding .................................................. $1,650,000
Additional paid-in capital

In excess of par value .............................................................................................................. 165,000
Total paid-in capital ................................................................................................................ 1,815,000
Retained Earnings ................................................................................................................ 750,000
Total paid-in capital and retained earnings ............................................................................ 2,565,000
Less: Treasury stock (15,000 shares)...................................................................................... (180,000)
Total stockholders' equity ....................................................................................................... $2,385,000

Instructions

Complete the following statements and show your computations.
(a) The number of shares of common stock issued was
(b) The number of shares of common stock outstanding was
(c) The sales price of the common stock when issued was $
(d) The cost per share of the treasury stock was $
(e) The average issue price of the common stock was $
(f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $

Reference no: EM1315016

Questions Cloud

Stock transactions of a company : Journalizing the stock transactions of a company - Journalize the stock transactions of Edmond Company in 2008.

Theory of market structures : Which type of firm faces the most elastic demand curve? In which of market structures are firms able to earn both accounting and economic profits in the long run?

Explaining strength of relationship between the assets : Explain the strength of relationship between the assets?

Using newton''s laws, compute the magnitude of normal force : A galvanometer with a coil resistance of 11.0 and the full-scale current of 0.150 mA is used with a shunt resistor to make an ammeter. The ammeter registers the maximum current of 4.00 mA. Find the equivalent resistance of the ammeter.

Calculation of average issue price : Calculation of average issue price and sale price of common stock and prepare balance sheet of Herman Corporation on December 31, 2008

Initial increase in aggregate demand : then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by.

Explain effect of risk free rate on cost of equity and debt : Explain Effect of risk free rate on cost of equity and debt and Assume that the risk-free rate increases

Determining prices and costs : Find out average fixed costs when the firm produces 50 widgets per day. Find out average total and variable costs for producing 49 widgets.

Compute the upper also lower limits which marginal cost : Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.

User Account

All Pages