Pandey Company's capital stock is currently selling for $25 per share.Pandey Company has the following accounts included within the owners' equity section of the balance sheet: $\begin{array} { l l }
\text { Capital stock, \$1.00 par value, } 10,000 \text { shares issued } & \$ 10,000\
\text { Additional paid-in capital } & \$ 60,000\

\end{array}$ Assuming that the only transaction affecting these accounts was the sale of the company's capital stock,Pandey Company originally sold its capital stock for

Question

Pandey Company's capital stock is currently selling for $25 per share.Pandey Company has the following accounts included within the owners' equity section of the balance sheet: $\begin{array} { l l } 
\text { Capital stock, \$1.00 par value, } 10,000 \text { shares issued } & \$ 10,000\
\text { Additional paid-in capital }  & \$  60,000\

\end{array}$ Assuming that the only transaction affecting these accounts was the sale of the company's capital stock,Pandey Company originally sold its capital stock for

Quizplus · Accepted Answer

The original sale price per share can be calculated by dividing the total contributed capital ($10,000 from capital stock + $60,000 from additional paid-in capital = $70,000) by the number of shares issued (10,000 shares), resulting in $7.00 per share.

Pandey Company's Capital Stock Is Currently Selling for $25 Per