The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows. Stockholders’ Equity Paid-in capital Preferred stock,? par value, 6% cumulative, 210,000 shares authorized, 51,000 shares issued and outstanding $ 510,000 Common stock, $20 stated value, 260,000 shares authorized, 51,000?? shares issued and outstanding 1,020,000 Paid-in capital in excess of par—Preferred 41,000 Paid-in capital in excess of stated value—Common 204,000 Total paid-in capital 1,775,000 Retained earnings 360,000 Treasury stock, 5,000 shares (36,000 ) Total stockholders’ equity $ 2,099,000 Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $23. Required What is the par value per share of the preferred stock? What is the dividend per share on the preferred stock? What is the number of common stock shares outstanding? What was the average issue price per share (price for which the stock was issued) of the common stock? If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stock split?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Related questions

Concept explainers

Question

100%

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows.


Stockholders’ Equity
Paid-in capital
Preferred stock,? par value, 6% cumulative,
210,000 shares authorized, 51,000 shares issued and outstanding	$	510,000
Common stock, $20 stated value, 260,000 shares authorized, 51,000?? shares issued and outstanding		1,020,000
Paid-in capital in excess of par—Preferred		41,000
Paid-in capital in excess of stated value—Common		204,000
Total paid-in capital				1,775,000
Retained earnings				360,000
Treasury stock, 5,000 shares				(36,000	)
Total stockholders’ equity			$	2,099,000

Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $23.

Required

What is the par value per share of the preferred stock?

What is the dividend per share on the preferred stock?

What is the number of common stock shares outstanding?

What was the average issue price per share (price for which the stock was issued) of the common stock?

If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stock split?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions