The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information:
$\begin{array}{lr}
\text { Common stock } \$ 3 \text { par value } & \$ 150,000 \
\text { Additional paid-in capital? common } & 850,000
\end{array}$ 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:  
$\begin{array}{lr}
\text { Common stock } \$ 3 \text { par value } & \$ 150,000 \
\text { Additional paid-in capital? common } & 850,000
\end{array}$ There have been two issues of stock since the corporation began business.The average issue price per share of stock was

Quizplus · Accepted Answer

The total value of common stock and additional paid-in capital is $1,000,000 ($150,000 + $850,000). The par value is $3 per share, so the number of shares issued is $150,000 / $3 = 50,000 shares. The average issue price per share is $1,000,000 / 50,000 = $20.00.