Problem - Analysis of Stockholders Equity

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Problem - Analysis of Stockholders' Equity

Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow:

 

20X6

20X5

Preferred stock, $100 par value, 10%

$640,000

$500,000

Common stock, $13 par value

$2,350,000

$1,750,000

Paid-in capital in excess of par value

Preferred

$24,000

 

Common

$4,620,000

$3,600,000

Retained earnings

$8,470,000

$6,920,000

Total stockholders' equity

$16,044,000

$12,770,000

Required -

1. Compute the number of preferred shares that were issued during 20X6.

2. Calculate the average issue price of the common stock sold in 20X6.

3. By what amount did the company's paid-in capital increase during 20X6?

4. Did Star's total legal capital increase or decrease during 20X6? By what amount?

Reference no: EM132460192

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