The following data are taken from the stockholders' equity section of the balance sheet of Driftwood Company: What was the average issue price per share of the common stock?
A)$36.40
B)$10.00
C)$42.00
D)$50.40

Question

The following data are taken from the stockholders' equity section of the balance sheet of Driftwood Company:  What was the average issue price per share of the common stock?
A)$36.40 
B)$10.00 
C)$42.00 
D)$50.40

Quizplus · Accepted Answer

Contributed capital is the amount of capital the company received from investors' contributions,in exchange for the company's common stock and preferred stock.The average issue price of this company's common stock is $42 per share [or (par value of $336,000 + additional paid-in capital of $168,000)divided by the 12,000 shares issued].

The Following Data Are Taken from the Stockholders' Equity Section