Calculation of average issue price of stock

Assignment Help Financial Accounting

Reference no: EM1314732

Calculation of average issue price of stock.

The information below relates to Question No. 1

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.

Reference no: EM1314732

Questions Cloud

Hypothesis test for one population mean : Report the t-value, whether you accept or reject Ho, and whether the difference was significant in a brief sentence.

What was the average issue price per share : What was the average issue price per share of preferred stock and How many shares of common stock are outstanding?

How far has the bag fallen : A helicopter is rising at 4.60 m/s when a bag of its cargo is dropped. The bag falls for 2.50 s. (suppose that the positive direction is upward.)

Fitting of multiple-linear regression model : Run a multiple regression and interpret all the findings, R 2 , F, IV coefficients, and the intercept. Then in paragraph format, identify and report the following:

Calculation of average issue price of stock : Calculation of average issue price of stock - 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 tha..

Algebraic expression by addition rule : Algebraic expression by addition rule.

Determine the book values per preferred share : Computation of book value of preferred stock and common stock - Determine the book values per preferred share and per common share

Pricing strategy for argyle inc and baker company : You are a pricing manager at Argyle Inc. - a medium-sized firm that recently introduced a new product into the market. Argyle's only competitor is Baker Company, which is significantly smaller than Argyle.

Fitting of multiple linear regression model : Interpret this data using regression and interpret all the findings, R 2 , F, IV coefficient, and the intercept.

User Account

All Pages