I just have a small question about how to calculate the shares of common stocks, no par having the information below, thanks.
The following stockholders' equity accounts arranged alphabetically are in the ledger of Tyner Corporation at December 31, 2010.
Common Stock ($5 stated value) $2,048,500
Paid-in Capital from Treasury Stock 13,310
Paid-in Capital in Excess of Stated Value-Common Stock 1,612,600
Paid-in Capital in Excess of Par Value-Preferred Stock 693,000
Preferred Stock (8%, $52 par, noncumulative) 837,720
Retained Earnings 1,752,400
Treasury Stock-Common (11,100 shares) 144,300
Instructions
Prepare a stockholders' equity section at December 31, 2010
I already figured it out
The following stockholders’ equity accounts arranged alphabetically are in the ledger
of McGrath Corporation at December 31, 2011.
Common Stock ($10 stated value) $1,500,000
Paid-in Capital from Treasury Stock 6,000
Paid-in Capital in Excess of Stated Value—Common Stock 690,000
Paid-in Capital in Excess of Par Value—Preferred Stock 288,400
Preferred Stock (8%, $100 par, noncumulative) 400,000
Retained Earnings 776,000
Treasury Stock—Common (8,000 shares) 88,000
Instructions
(a) Prepare a stockholders’ equity section at December 31, 2011.
(b) Compute the book value per share of the common stock, assuming the preferred stock has a
call price of $110 per share.
this is like an example whats going to be on test but i cant figure it out
To calculate the shares of common stocks, you will need to consider the information provided about the common stock and treasury stock in the stockholders' equity section.
First, let's determine the number of shares of common stock outstanding. The information states that there are 11,100 shares of treasury stock, but it doesn't mention the number of shares issued or outstanding. So we need to find the difference.
To do this, we need to know the par value or stated value of the common stock. The par value is $5 stated value per share.
To find the number of shares issued, divide the total par value of the common stock by the par value per share:
Total par value of common stock = Par value per share × Number of shares
Total par value of common stock = $5 × Number of shares
Given that the total par value of common stock is $2,048,500, we can solve for the number of shares:
$2,048,500 = $5 × Number of shares
Number of shares = $2,048,500 / $5
After calculating this, you will find that the number of shares of common stock issued is 409,700.
Next, we can calculate the amount of paid-in capital in excess of stated value for common stock.
Paid-in capital in excess of stated value-Common stock represents the amount investors have paid above the stated value per share. Since the stated value is $5, we will subtract the stated value from the amount paid in excess. The given information states that the paid-in capital in excess of stated value for common stock is $1,612,600.
Therefore, the amount paid in excess per share is:
Amount paid in excess per share = Paid-in capital in excess of stated value / Number of shares
Amount paid in excess per share = $1,612,600 / 409,700
After calculating this, you will find that the amount paid in excess per share is approximately $3.94.
Now we can prepare the stockholders' equity section at December 31, 2010:
Stockholders' Equity:
Common Stock ($5 stated value):
Number of shares: 409,700
Total common stock value: $2,048,500
Paid-in Capital in Excess of Stated Value-Common Stock: $1,612,600
Amount paid in excess per share: $3.94
Paid-in Capital from Treasury Stock: $13,310
Paid-in Capital in Excess of Par Value-Preferred Stock: $693,000
Preferred Stock (8%, $52 par, noncumulative): $837,720
Retained Earnings: $1,752,400
Treasury Stock-Common (11,100 shares): $144,300
This is the stockholders' equity section at December 31, 2010, based on the information provided.