The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information: There have been two issues of stock since the corporation began business.The average issue price per share of stock was

Question

The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information:  There have been two issues of stock since the corporation began business.The average issue price per share of stock was

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To find the average issue price per share of stock, we need to divide the total amount of money paid for the shares by the total number of shares issued. However, we don't have that information in the given balance sheet. Therefore, we need to make an assumption. Let's assume that the two issues of stock were the only issues and they were both at par value. Since the par value is $10 per share, we can calculate the number of shares issued as follows:

Total amount of common stock = $540,000 (given on the balance sheet)
Par value per share = $10
Number of shares issued = Total amount of common stock / Par value per share = $540,000 / $10 = 54,000 shares

Now, let's assume that the first issue of stock was for 30,000 shares and the second issue was for 24,000 shares. We don't know the prices of the individual issues, but we can find the total amount of money received as follows:

Total amount received = (30,000 shares × Price per share) + (24,000 shares  × Price per share)
Total amount received = (54,000 shares × Price per share)

Dividing both sides by 54,000 shares, we get:

Price per share = Total amount received / 54,000 shares

We don't have the total amount received on the balance sheet, but we can calculate it as:

Total amount received = Total amount of common stock + Additional paid-in capital
Total amount received = $540,000 + $1,260,000 = $1,800,000

Therefore, the average issue price per share of stock is:

Average issue price per share = Total amount received / 54,000 shares = $1,800,000 / 54,000 shares = $33.33

However, the answer choices don't include this option, so we need to round it to the nearest option. The closest option is $20.00 (choice C), which is lower than $33.33. This suggests that either the assumptions we made are incorrect, or there were other issues of stock that we don't know about. However, given the information provided, choice C is the best answer.

The Stockholders' Equity Section of the Balance Sheet of Sea