Purchase Solution

# Accounting Problems

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Accounting problems: stock value, paid-in capital, treasury stock. See attachment for accounting problems.

##### Solution Summary

This problem looks at several different accounting problems. The topics involve stock value, paid-in capital, treasury stock, and preferred stock dividends.

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A.
The common stock value on May 31, 2002 should be 200,000 * \$6 = \$1,200,000. This is the par value of the 200,000 shares issued.
Add up the numbers to get the total stockholder's equity of \$20,520,000.

B.
The increase in additional paid-in capital during May was \$8,400,000 - \$8,240,000 = \$160,000.
The common stock par value entry increased by \$60,000.
The total proceeds of the stock sale were thus \$160,000 + \$60,000 = \$220,000.
The number of shares that were sold was equal to 200,000 - 190,000 = 10,000.
The price per share was thus: \$220,000/10,000 = \$22.

C.
The increase ...

##### IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)