A particular balance sheet includes the following information within the stockholders' equity section: $\begin{array}{llcc}
\text { Common stock, \$ 5 par value } &\$ 300,000 \
\text { Paid-in capital in excess of par } &1.740,000
\end{array}$
Assume that common stock is the only class of stock that has been issued and that there have been two issues of stock since the corporation began business.What is the average issue price per share of stock?

Question

A particular balance sheet includes the following information within the stockholders' equity section: $\begin{array}{llcc}
  \text { Common stock,  \$ 5 par value } &\$ 300,000  \
 \text { Paid-in capital in excess of par } &1.740,000
\end{array}$
 Assume that common stock is the only class of stock that has been issued and that there have been two issues of stock since the corporation began business.What is the average issue price per share of stock?

Quizplus · Accepted Answer

The total amount received from issuing stock is the sum of common stock and paid-in capital in excess of par, which is $300,000 + $1,740,000 = $2,040,000. The number of shares issued is $300,000 / $5 = 60,000 shares. The average issue price per share is $2,040,000 / 60,000 = $34.00.

A Particular Balance Sheet Includes the Following Information Within the Stockholders