The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 2, is as follows. Stockholders' Equity Paid-in capital Preferred stock, ? par value, 6% cumulative, 100,000 shares authorized, 10,000 shares issued and outstanding $200,000 Common stock, $10 stated value, 200,000 shares authorized, 100,000 shares issued and ?? shares outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Common Total paid-in capital Retained earnings Treasury stock, 1,000 shares Total stockholderst 1,000,000 25,000 500,000 $1,725,000 420,000 (13,000)
The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 2, is as follows. Stockholders' Equity Paid-in capital Preferred stock, ? par value, 6% cumulative, 100,000 shares authorized, 10,000 shares issued and outstanding $200,000 Common stock, $10 stated value, 200,000 shares authorized, 100,000 shares issued and ?? shares outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Common Total paid-in capital Retained earnings Treasury stock, 1,000 shares Total stockholderst 1,000,000 25,000 500,000 $1,725,000 420,000 (13,000)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
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![The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 2, is as follows.
Stockholders' Equity
Paid-in capital
Preferred stock, ? par value, 6% cumulative,
100,000 shares authorized, 10,000 shares issued and
Paid-in capital in excess of par-Preferred
outstanding
$200,000
Common stock, $10 stated value, 200,000 shares authorized,
100,000 shares issued and ?? shares outstanding
1,000,000
25,000
500,000
$1,725,000
420,000
(13,000)
Paid-in capital in excess of stated value-Common
Total paid-in capital
Retained earnings
Treasury stock, 1,000 shares
Total stockholders' equity
$2,132,000
Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $26.
Required
a. What is the par value per share of the preferred stock?
b. What is the dividend 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?
f. If Mann Equipment Company 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?
Complete this question by entering your answers in the tabs below.
Req A to D
Req F
a. What is the par value per share of the preferred stock?
b.What is the dividend per share on the preferred stock?
Note: Round your answer to 2 decimal places.
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?
a. Par value
b. Dividend
per share
per share
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Transcribed Image Text:The stockholders' equity section of the balance sheet for Mann Equipment Company at December 31, Year 2, is as follows.
Stockholders' Equity
Paid-in capital
Preferred stock, ? par value, 6% cumulative,
100,000 shares authorized, 10,000 shares issued and
Paid-in capital in excess of par-Preferred
outstanding
$200,000
Common stock, $10 stated value, 200,000 shares authorized,
100,000 shares issued and ?? shares outstanding
1,000,000
25,000
500,000
$1,725,000
420,000
(13,000)
Paid-in capital in excess of stated value-Common
Total paid-in capital
Retained earnings
Treasury stock, 1,000 shares
Total stockholders' equity
$2,132,000
Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $26.
Required
a. What is the par value per share of the preferred stock?
b. What is the dividend 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?
f. If Mann Equipment Company 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?
Complete this question by entering your answers in the tabs below.
Req A to D
Req F
a. What is the par value per share of the preferred stock?
b.What is the dividend per share on the preferred stock?
Note: Round your answer to 2 decimal places.
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?
a. Par value
b. Dividend
per share
per share
Show less
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