Calculation of number of stock outstandingthe information

Assignment Help Financial Accounting

Reference no: EM13356664

Calculation of number of stock outstanding.

The information below relates to Question No. 2

The stockholders' equity section of the balance sheet of Garson Fashions, Inc., at December 31, 2008 appears as follows:

Stockholders' equity:

7% preferred stock, $100 par, callable at $105. 50,000 shares authorized, 60,000 shares issued ...................	$6,000,000
Common stock, $2 par, 600,000 shares authorized, 400,000 shares issued, of which 30,000 are held in treasury ................................	800,000
Additional paid-in capital:
From issuance of preferred stock................................	680,000
From issuance of common stock .........................................................................	1,720,000
From treasury stock transactions .....................................................................	60,000
From common stock dividends ...........................................................................	400,000
Total paid-in capital ..........................................................................	$9,660,000
Retained earnings ($240,000 equal to cost of treasury stock is not available for dividends) ............................................................	2,400,000
$12,060,000
Less: Treasury stock (at cost 30,000 common shares) ........................................	(240,000)
Total stockholders' equity ......................................................................	$11,820,000

Answer the following question based on the stockholder's equity section given above. The company purchased no treasury stock before 2008. Please show your work to receive partial credit in the event that your final answer is incorrect.

a. How many shares of common stock are outstanding?

b. What was the average issue price per share of preferred stock?

Reference no: EM13356664

Questions Cloud

Computation of annual paymentyou will retiring in 25 years : computation of annual payment.you will retiring in 25 years and want to have amassed 1 million in savings at the time

Multiple choice question based on stock : multiple choice question based on stock valuation.1.nbspcarter corporation had net income of 250000 and paid dividends

Multiple choice questions based on stock : multiple choice questions based on stock valuation.1.nbspcarter corporation had net income of 250000 and paid dividends

Calculation of value of common stock and yield on common : calculation of value of common stock and yield on common stock.1. expected rate of return on a corporate

Calculation of number of stock outstandingthe information : calculation of number of stock outstanding.the information below relates to question no. 2the stockholders equity

What was the average issue price per share of preferred : what was the average issue price per share of preferred stock?7 preferred stock 100 par callable at 105. 50000 shares

Calculation of average issue price of stockthe information : calculation of average issue price of stock.the information below relates to question no. 1the stockholders equity

Computation of book value of preferred stock and common : computation of book value of preferred stock and common stock.the stockholders equity section of a corporations balance

Calculation of total contribution margin and variable costs : calculation of total contribution margin and variable costs analysis1. iacono corporation is a wholesaler that sells a

User Account

All Pages