Question

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows:

Stockholders’ Equity
Paid-in capital
Preferred stock, ? par value, 5% cumulative,
140,000 shares authorized, 44,000 shares issued and outstanding		 $ 440,000
Common stock, $20 stated value, 190,000 shares
authorized, 44,000 shares issued and outstanding		 880,000
Paid-in capital in excess of par—Preferred 34,000
Paid-in capital in excess of stated value—Common 66,000
Total paid-in capital 1,420,000
Retained earnings 290,000
Total stockholders’ equity $ 1,710,000


Note: The market value per share of the common stock is $36, and the market value per share of the preferred stock is $16.

Required
a. What is the par value per share of the preferred stock?
b. What is the dividend per share on the preferred stock? (Round your answer to 2 decimal places.)
c. What was the average issue price per share (price for which the stock was issued) of the common stock? (Round your answer to 2 decimal places.)
e. If Mann declares a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stock split?

a. Par value per share
b. Dividend per share
c. Average issue price per share
e. Shares outstanding after the split
Amount transferred form retained earnings
Market price of common stock after split
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution a:

Par worth per share of preferred shares = preferred shares value / preferred stock issued

= $440000/44000 = $10 per share

Solution b:

Dividend per share on preferred shares = value per share * five-hitter = $10*5% = $0.50 per share

Solution c:

Average issue worth per common share = (common stock + paid in capital in far more than explicit worth common stock) / ordinary shares issued

= ($880000+ $66000) / 44000 = $21.50 per share

Solution e:

Outstanding shares once split = outstanding shares *2 = 44000*2 = eighty eight,000 shares

Amount transferred from preserved earnings account = $0 (because solely value is halved and shares ar ar doubled, No modification in total value)

Market price of stock = $36/ two = $18

Please upvote ,comment incase any doubt , feel free to comment ,thank you.....

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 5% cumulative, 140,000 shares authorized, 44,000 shares issued and outstanding $ 440,000 Common stock, $20 stated value, 190,000 shares authorized, 44,000 shares issued and outstanding 880,000 Paid-in capital in excess of par—Preferred 34,000 Paid-in capital in excess of stated value—Common 66,000 Total paid-in capital 1,420,000 Retained earnings 290,000 Total stockholders’ equity...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018,...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows. Stockholders’ Equity Paid-in capital Preferred stock,? par value, 4% cumulative, 270,000 shares authorized, 57,000 shares issued and outstanding $ 570,000 Common stock, $25 stated value, 320,000 shares authorized, 57,000?? shares issued and outstanding 1,425,000 Paid-in capital in excess of par—Preferred 47,000 Paid-in capital in excess of stated value—Common 114,000 Total paid-in capital 2,156,000 Retained earnings 420,000 Treasury stock, 6,000 shares (42,000...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 6% cumulative, 250,000 shares authorized, 55,000 shares issued and outstanding $ 550,000 Common stock, $20 stated value, 300,000 shares authorized, 55,000 shares issued and ?? shares outstanding 1,100,000 Paid-in capital in excess of par—Preferred 45,000 Paid-in capital in excess of stated value—Common 165,000 Total paid-in capital $ 1,860,000 Retained earnings 400,000...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE CO. Balance Sheet (partial) Stockholders' equity   Paid-in capital     Preferred stock, cumulative, 11,000 shares authorized,       6,000 shares issued and outstanding $600,000     Common stock, no par, 750,000 shares authorized,       600,000 shares issued 6,000,000       Total paid-in capital 6,600,000   Retained earnings 1,450,000   Total paid-in capital and retained earnings 8,050,000   Less: Treasury stock (5,000 common shares) 41,000 Total stockholders' equity $8,009,000 From a review of the stockholders' equity section,...
The stockholders’ equity section of Pina Colada Corp. at December 31 is as follows. Pina Colada...
The stockholders’ equity section of Pina Colada Corp. at December 31 is as follows. Pina Colada Corp. Balance Sheet(Partial) Paid-in capital    Preferred stock, cumulative, 10,000 shares authorized, 7,000 shares issued and outstanding $420,000    Common stock, no par, 700,000 shares authorized, 570,000 shares issued 1,140,000      Total paid-in capital 1,560,000 Retained earnings 1,858,000         Total paid-in capital and retained earnings 3,418,000 Less: Treasury stock (12,000 common shares) 62,400              Total stockholders’ equity $3,355,600 From a review of the stockholders’ equity section, as chief accountant,...
The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2016, appears below: Stockholders'...
The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2016, appears below: Stockholders' equity    Paid-in capital       Common stock, $10 par value, 400,000 shares authorized;       300,000 issued and outstanding $3,000,000    Paid-in capital in excess of par 1,200,000          Total paid-in capital 4,200,000    Retained earnings 900,000          Total stockholders' equity $5,100,000 During 2017, the following stock transactions occurred: Jan. 18 Issued 80,000 shares of common stock at $23 per share. Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at...
The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following...
The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts: Contributed Capital Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) $ 108,000 Additional Paid-In Capital, Preferred 15,390 Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,200 shares) 632,400 Retained Earnings 32,000 Treasury Stock, 1,000 Preferred shares at a cost (9,600 ) Assume that no shares of treasury stock have been sold in...
Book Value for Preferred and Common Stock The stockholders' equity section of Plaka Corporation's balance sheet...
Book Value for Preferred and Common Stock The stockholders' equity section of Plaka Corporation's balance sheet follows. Contributed capital: Preferred stock, $100 par value, callable at $105 per share, 6 percent cumulative, 5,000 shares authorized, 100 shares issued and outstanding $10,000 Common stock, $5 par value, 50,000 shares authorized, 5,000 shares issued, 4,500 shares outstanding 25,000 Additional paid-in capital 14,000 Total contributed capital $49,000 Retained earnings 47,500 Total contributed capital and retained earnings $96,500 Less treasury stock, common (500 shares...
The stockholders’ equity section of the Olivia Corporation’s balance sheet at December 31, 2019, appears below:...
The stockholders’ equity section of the Olivia Corporation’s balance sheet at December 31, 2019, appears below:       Stockholders’ equity             Paid-in capital                   Common stock, $10 par value, 400,000 shares authorized;                      300,000 issued and outstanding                                                                $3,000,000             Paid-in capital in excess of par                                                                            1,200,000                         Total paid-in capital                                                                                 4,200,000             Retained earnings                                                                                                   900,000                         Total stockholders’ equity                                                                     $5,100,000 During 2020, the following stock transactions occurred. Prepare the journal entries to record these stock transactions. Jan.     18      Issued 50,000 shares of common stock at $23 per share. Aug.   20      Purchased 15,000 shares of...
The stockholders' equity section of the balance sheet of Crammond Corporation at December 31, appears as...
The stockholders' equity section of the balance sheet of Crammond Corporation at December 31, appears as follows: Stockholders' Equity $2 preferred stock, $100 par, 10,000 shares authorized $ 670,000 Common stock, $1 par, 100,000 shares authorized 72,000 Additional Paid-in Capital: From issuance of preferred stock 165,000 From issuance of common stock 710,000 Total paid-in capital 1,617,000 Retained earnings 835,000 Total Stockholders' equity $ 2,452,000 How many shares of common stock are outstanding? 110,000. 100,000. 72,000. 77,000.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT