Prairie Charters reported the following information at December 31, 2016: $\begin{array}{lr}
\text { Common stock, } \$ 1 \text { par, } 500,000 \text { shares authorized, } 100,000 \text { shares issued } & \$ 100,000 \
\text { Additional paid-in capital-Common } & 25,000 \
\text { Retained earnings } & 75,000 \
\quad \text { Total stockholders' equity } & \$ 250,000
\end{array}$ The average recorded value per share of common stock at December 31, 2016, is

Question

Quizplus · Accepted Answer

The average recorded value per share of common stock is calculated by dividing the total stockholders' equity related to common stock by the number of shares issued. This includes both the par value of the common stock ($100,000) and the additional paid-in capital ($25,000), totaling $125,000. Dividing this by the 100,000 shares issued gives an average recorded value per share of $1.25.

Prairie Charters Reported the Following Information at December 31, 2016