The stockholders equity section of Kay Corporation at the end of the current year showed:
|
Preferred stock (6%, $40 par, 10,000 shares authorized, |
|
|
6,000 shares issued and outstanding). |
$ ? |
|
Common stock ($6 par, 80,000 shares authorized, 53,000 issued, |
|
|
52,650 shares outstanding |
318,000 |
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Paid in capital in excess of par, preferred stock. |
? |
|
Paid in capital in excess of par, common stock |
129,000 |
|
Retained earnings. |
86,000 |
|
Less treasury stock (350 shares at cost) |
(2,000) |
|
Total stockholders equity |
$ ? |
1. What is the dollar amount to be reported for preferred stock?
2. What is the average price for which common stock was issued? (Round to the nearest cent.)
3. If preferred stock was issued at an average price of $43 per share, what amount should appear in the paid in capital in excess of par, preferred stock account?
4. What is the average cost per share of treasury stock? (Round to the nearest cent.)
5. Assuming that the preferred stock was issued for an average price of $43 per share, what is total stockholders equity?
6. If net income for the year were $67,000 and if only dividends on preferred stock were paid, by how much would retained earnings increase?