Acc201 Survey of Accounting: P8-23 The stockholders’ equity section of the balance sheet

Acc201 Survey of Accounting 
Problem 8-23 
The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2010, is as follows. 
Stockholders’ equity 
Paid-in capital 
Preferred stock, ? par value, 6% cumulative, 50,000 shares authorized, 40,000 shares issued and outstanding 400,000 
Common stock, $10 stated value, 150,000 shares authorized, 60,000 shares issued and ? outstanding 600,000 
Paid-in capital in excess of par-preferred 30,000 
Paid-in capital in excess of par-common 200,000 
Total paid-in capital 1,230,000 
Retained earnings 250,000 
Treasury stock, 2,000 shares (50,000)
Total stockholders’ equity 1,430,000 
Note: the market value per share of the common stock is $25, and the market value per share of the preferred stock is $12. 

Required 
a.  What is the par value share of the preferred stock? 
b.  What is the divided per share on the preferred stock? 
c.  What is the number of common stock shares outstanding? 
d.  What was the average issue price per share( price for which the stock was issued) of the common stock? 
e.  Explain the difference between the average issue price and the market price of the common stock. 
f.  If Atkins declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the retained earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split?
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