The following information is from the balance sheet of Tudor Corporation as of December 31, 2014.
$\begin{array}{|l|r|r|}
\hline \text { Preferred stock, } \$ 100 \text { par } & \quad\quad& \$ 500,000 \
\hline \text { Paid-in capital in excess of par-preferred } && 35,000 \
\hline \text { Common stock, } \$ 1 \text { par }& & 190,000 \
\hline \text { Paid-in capital in excess of par-common } & & 380,000 \
\hline \text { Retained earnings } & & 131,500 \
\hline \text { Total stockholders' equity } && \$ 1,236,500\
\hline
\end{array}$

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What is the average issue price of the preferred stock shares?

Question

The following information is from the balance sheet of Tudor Corporation as of December 31, 2014.
$\begin{array}{|l|r|r|}
\hline \text { Preferred stock, } \$ 100 \text { par } & \quad\quad& \$ 500,000 \
\hline \text { Paid-in capital in excess of par-preferred } && 35,000 \
\hline \text { Common stock, } \$ 1 \text { par }& & 190,000 \
\hline \text { Paid-in capital in excess of par-common } & & 380,000 \
\hline \text { Retained earnings } & & 131,500 \
\hline \text { Total stockholders' equity } && \$ 1,236,500\
\hline 
\end{array}$

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What is the average issue price of the preferred stock shares?

Quizplus · Accepted Answer

The average issue price of the preferred stock shares is $107. This is calculated by dividing the total paid-in capital for the preferred stock by the number of shares issued. In this case, the total paid-in capital for the preferred stock is $535,000 (par value of $500,000 plus paid-in capital in excess of par of $35,000). The number of shares issued is not given, but we can assume that it is 5,000 shares since the par value per share is $100. Therefore, the average issue price per share is $535,000 / 5,000 = $107.

The Following Information Is from the Balance Sheet of Tudor