Class: Date Name Financial Accounting ACC11I-Professor Horowitz Test 3. Fall 201
ID: 2576701 • Letter: C
Question
Class: Date Name Financial Accounting ACC11I-Professor Horowitz Test 3. Fall 2017 6. The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31 $300,000 600,000 500,000 100,000 200,000 60,000 Common Stock-$5 par, 60,000 shared issued Paid-In Capital in Excess of Par Common Stock Preferred stock- $100 par, 5,000 shares issued Paid-In Capital in Excess of Par-Preferred Retained Earnings Treasury Stock (cost-$12 per share) the following questions: 1. How 2. What was the average market price per share at which common stock was issued? 3. What was the a 4. What is the total value of the capital supplied by investors? 5. What is the total val 6. How many shares of e 7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning shares of treasury stock are owned? market price per share at which preferred stock was issued? f stockholders' equity? value of retained earnings?Explanation / Answer
Torre Company 1) Balanc of Treasury Stock $ 60,000.00 Cost per share of Treasury Stock $ 12.00 Per Shares Number of shares of Treasury stock owned=($60000/$12) 5000 Shares 2) Balance in Common Stock $ 300,000.00 Balance in Paid in Capital excess of Par-Common Stock $ 600,000.00 Total Market Price of Shares issued=($300000+$600000) $ 900,000.00 Number of common Stock 60000 Market Price per share of common stock issued=($900000/60000) $ 15.00 3) Balance in Preferred Stock $ 500,000.00 Balance in Paid in Capital excess of Par-Preferred Stock $ 100,000.00 Total Market Price of Prfrred Shares issued=($300000+$600000) $ 600,000.00 Number of Prefrred Stock 5000 Market Price per share of Preferred stock issued=($900000/60000) $ 120.00 4) What is the total value of capital supplied by investors Common Stock $ 300,000.00 Paid in Capital excess of par-Common Stock $ 600,000.00 Preferred Stock $ 500,000.00 Paid in Capital excess of par-Prferred Stock $ 100,000.00 Total Value of capital supplied by investors $ 1,500,000.00 5) Total Value of Stockholder Equity Total value of capital supplied by investors $ 1,500,000.00 Retained Earnings $ 200,000.00 Less: treasury Stock $ 60,000.00 Total Value of Stockholder Equity $ 1,640,000.00 6) How many shares of common stock outstanding Number of Common Stock $ 60,000.00 Less: Number of Treasury Stock $ 5,000.00 Number of common stock outstanding $ 55,000.00 7) Retained Earnings A/c Particular Amount Particular Amount To Dividend Paid $ 20,000.00 By bal B/d(balancing figure) $ 145,000.00 By Bal c/d $ 200,000.00 By Net Income during the year $ 75,000.00 Total $ 220,000.00 $ 220,000.00