Question

Exercise 15-10

[Partially correct answer.] Your answer is partially correct. Try again.

For a recent 2-year period, the balance sheet of Buffalo Company showed the following stockholders’ equity data at December 31 (in millions).

2017
2016
Additional paid-in capital $ 960 $ 818
Common stock 669 663
Retained earnings 7,150 5,260
Treasury stock 1,900 900
   Total stockholders’ equity $6,879 $5,841

Common stock shares issued 223 221
Common stock shares authorized 500 500
Treasury stock shares 38 25

(a) Answer the following questions.

(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.)

Par value of common stock $
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(2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016?

December 31, 2017
December 31, 2016
Cost per share of Treasury stock $
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$
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(b) Prepare the stockholders’ equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.)

Buffalo Company
Balance Sheet (in millions of dollars) (Partial)
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Additional Paid-in Capital
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Paid-in Capital
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Paid-in Capital
Total Paid-in Capital and Retained Earnings
Total Property, Plant and Equipment
Total Stockholders' Equity
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Additional Paid-in Capital
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Paid-in Capital
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Paid-in Capital
Total Paid-in Capital and Retained Earnings
Total Property, Plant and Equipment
Total Stockholders' Equity
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$
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    Additional Paid-in Capital
    Current Assets
    Current Liabilities
    Intangible Assets
    Long-term Investments
    Long-term Liabilities
    Paid-in Capital
    Property, Plant and Equipment
    Stockholders' Equity
    Total Assets
    Total Current Assets
    Total Current Liabilities
    Total Intangible Assets
    Total Liabilities
    Total Liabilities and Stockholders' Equity
    Total Long-term Investments
    Total Long-term Liabilities
    Total Paid-in Capital
    Total Paid-in Capital and Retained Earnings
    Total Property, Plant and Equipment
    Total Stockholders' Equity
[Entry field with incorrect answer now contains modified data]
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    Additional Paid-in Capital
    Current Assets
    Current Liabilities
    Intangible Assets
    Long-term Investments
    Long-term Liabilities
    Paid-in Capital
    Property, Plant and Equipment
    Stockholders' Equity
    Total Assets
    Total Current Assets
    Total Current Liabilities
    Total Intangible Assets
    Total Liabilities
    Total Liabilities and Stockholders' Equity
    Total Long-term Investments
    Total Long-term Liabilities
    Total Paid-in Capital
    Total Paid-in Capital and Retained Earnings
    Total Property, Plant and Equipment
    Total Stockholders' Equity
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Additional Paid-in Capital    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Paid-in Capital    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-term Liabilities    
Total Paid-in Capital    
Total Paid-in Capital and Retained Earnings    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
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Add
Less
:
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Additional Paid-in Capital    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Paid-in Capital    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-term Liabilities    
Total Paid-in Capital    
Total Paid-in Capital and Retained Earnings    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$
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Answer 1

Solution a1:

Par value of common stock = common stock / Outstanding shares = $669 / 223 = $3 per share

Solution a2:

Cost per share of treausury stock = Total cost of treasury stock / Outstanding shares in treasury stock

Dec 31, 2017 = $1,900 / 38 = $50 per share

Dec 31, 2016 = $900 / 25 = $36 per share

Solution b:

Buffalo Company
Balance Sheet (Partial) (In Million Dollar)
Particulars	Amount
Stockholders Equity:
Common Stock	$669.00
Additonal Paid in capital	$960.00
Contributed Capital	$1,629.00
Retained Earnings	$7,150.00
Treasury Stock	-$1,900.00
Total Stockholder's Equity	$6,879.00