cheddacheese
New member
- Joined
- Apr 2, 2008
- Messages
- 10
Can someone please help. I am beyond stuck!
Problem: Sammy's Auto Parts reported the followin info at Dec.31,2004:
Preferred stock, 12%, $1 par, 50,000 shares
authorized, issued, and outstanding; cumulative;
non-participating; callable at par value = $50,000
Common stock, $2 par, 30,000 shares authorized = 40,000
Additional paid-in capital- Common = 50,000
Retained Earnings = 30,000
Total contributed capital and retained earnings = $170,000
Less: Treasury Stock (500 shares at cost) = 5,000
Total Stockholders' Equity = $165,000
These are the answers provided:
A. 20,500
B. 30,000
C.50,000
D.19,500
E.20,000
F.80,000
Questions:
How many shares of preferred stock are issued?
- I came out with the answer of 50,000. (50,000 / $1par). Is this correct?
How many shares of common stock are issued?
At first I thought it would be 30,000. But then I looked at it again. If its at $2 par, with 30,000 "issued" would the end number be 60,000? But 40,000 is listed. Can you please point me in the right direction?
Problem: Sammy's Auto Parts reported the followin info at Dec.31,2004:
Preferred stock, 12%, $1 par, 50,000 shares
authorized, issued, and outstanding; cumulative;
non-participating; callable at par value = $50,000
Common stock, $2 par, 30,000 shares authorized = 40,000
Additional paid-in capital- Common = 50,000
Retained Earnings = 30,000
Total contributed capital and retained earnings = $170,000
Less: Treasury Stock (500 shares at cost) = 5,000
Total Stockholders' Equity = $165,000
These are the answers provided:
A. 20,500
B. 30,000
C.50,000
D.19,500
E.20,000
F.80,000
Questions:
How many shares of preferred stock are issued?
- I came out with the answer of 50,000. (50,000 / $1par). Is this correct?
How many shares of common stock are issued?
At first I thought it would be 30,000. But then I looked at it again. If its at $2 par, with 30,000 "issued" would the end number be 60,000? But 40,000 is listed. Can you please point me in the right direction?
