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    Accounting Problems

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

    © BrainMass Inc. brainmass.com June 3, 2020, 4:48 pm ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-problems-4926

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    Solution Preview

    Please see the attached file.
    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 ...

    Solution Summary

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

    $2.19

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