Purchase Solution

book value of the common stock par account

Not what you're looking for?

Ask Custom Question

Spridget Company has 1,000,000 shares of common stock authorized with par value of $3 per share, of which 600,000 shares are outstanding. The company received $7 per share when it issued shares to the public.

Required:

What is the book value of the common stock par account and the additional paid in capital account?

Purchase this Solution
Solution Summary

The solution explains how to calculate the book value.

Solution Preview

When $7 was received, it would be divided between the par value and additional paid in capital. The amount that will be applied ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

View More Free Quizzes
Related BrainMass Solutions

  • Stockholders' equity transactions

    Book value per common share ______________ 1. The number of shares outstanding can be calculated using the balance in the common stock account. The amount in the common stock account would be number of shares X $25 par value.

  • P 11-1A Oxygen Co. & P 11-1B Nilson Company - Stockholders'

    What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $347,500?

  • Calculating book value per common share

    Solution: To find the book value per common share, we have to take into account: 1) Common stock and 2) Retained earnings We ignore preferred stock value because we are finding out book value per common share.

  • Stock Valuations

    191084 Stock Valuations Calculate the book value per share based on the reported stockholders' equity account for Bridgford Foods in fiscal year ending November 2, 2005: Shareholders' equity ('000) Preferred stock, without par value Authorized

  • Calculations Regarding the Common Stock of a Firm

    The par value of each share are given.

  • Balance in Investment Account

    cash and issued 12,000 shares of its $30 par value common stock (valued at $90 per share) for all of Salem's outstanding common stock.

  • Hinckley Company - Stock dividend, Stock Split

    Thus, the Common shares value in the Stockholder's equity account is unchanged.

  • Shareholders Equity

    (a) Net Increase in Common Stock Account = 800,000 - 650,000 = 150,000 Par Value of a Share = $10 (given) Thus Total new shares of common stock issued = 150,000/10 = 15,000 Increase in Additional Paid in Capital due to Common Stock = 525,000 - 300,000

  • Substantive Tests

    The common stock account is the stockholders equity account that reports the par or stated value of the issued shares of common stock. On the other hand the treasury stock account shows the stock that is bought back by the issuing company.

View More Related Solutions