Peace Company's capital stock is currently trading for $22 per share.The Peace Company has the following accounts included within the owners' equity section of the balance sheet: Capital stock, $ \$ 5.00 $ par value, 10,000 shares issued $ \$ 60,000 $
Capital in excess of par value $ \$ 110,000 $ If the only transaction affecting these accounts was the issue of the company's capital stock, the Peace Company originally sold its capital stock for_____.

Question

Peace Company's capital stock is currently trading for $22 per share.The Peace Company has the following accounts included within the owners' equity section of the balance sheet: Capital stock, $ \$ 5.00 $ par value, 10,000 shares issued $ \$ 60,000 $
 Capital in excess of par value $ \$ 110,000 $ If the only transaction affecting these accounts was the issue of the company's capital stock, the Peace Company originally sold its capital stock for_____.

Quizplus · Accepted Answer

The original sale price per share can be calculated by dividing the total amount received from issuing stock by the number of shares issued. The total amount received is the sum of the capital stock at par value ($60,000) and the capital in excess of par value ($110,000), which equals $170,000. Dividing this by the number of shares issued (10,000) gives $17.00 per share.

Peace Company's Capital Stock Is Currently Trading for $22 Per $5.00 \$ 5.00 $5.00

Peace Company's Capital Stock Is Currently Trading for $22 Per $\$ 5.00$