Purchase Solution

Accounting Problems

Not what you're looking for?

Ask Custom Question

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

Attachments
Purchase this Solution

Solution Summary

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

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 ...

Purchase this Solution


Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

IPOs

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

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking