The equity accounts of Bio-Tech Company is as follows:
Common Shares ($1.00 per value) - $10,000.000
Additional paid-in-capital $50,000.000
Retained earnings $125,000.000
Treasury shares at cost $1,000.000
Net common equity 186,000.000
Suppose the firm sells 2,000,000 new (additional) shares at a price of $19 per share. What is the new value of Common Shares account? What is the new value of the additional paid-in-capital account? what is the new value of the net common equity?
See attached for correct formatting.
Amount Change New Amount
Common stock, par account $10,000 $2,000,000 $2,010,000
Additional paid in capital in excess of par ...
Instructional notes and computations are shown for your study.