The stockholders’ equity section of The Seventies Shop is presented here.THE SEVENTIES SHOP Balance Sheet (partial)($ in thousands)Stockholders’ equity:Preferred stock, $50 par value $ –0–Common stock, $5 par value 20,000Additional paid-in capital 100,000Total paid-in capital 120,000Retained earnings 53,000Treasury stock (3,700)Total stockholders’ equity $ 169,300Required:Based on the stockholders’ equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands.1. How many shares of preferred stock have been issued?2. How many shares of common stock have been issued?3. Total paid-in capital is $120 million. At what average price per share were the common shares issued?4. If retained earnings at the beginning of the period was $45 million and net income during the year was $9,907,500, how much was paid in dividends for the year?5. If the treasury stock was purchased for $20 per share, how many shares were purchased?6. How much was the dividend per share? (Hint: Dividends are not paid on treasury stock.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 5SEA: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity...

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The stockholders’ equity section of The Seventies Shop is presented here.

THE SEVENTIES SHOP Balance Sheet (partial)
($ in thousands)
Stockholders’ equity:
Preferred stock, $50 par value $ –0–
Common stock, $5 par value 20,000
Additional paid-in capital 100,000
Total paid-in capital 120,000
Retained earnings 53,000
Treasury stock (3,700)
Total stockholders’ equity $ 169,300

Required:
Based on the stockholders’ equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands.
1. How many shares of preferred stock have been issued?
2. How many shares of common stock have been issued?
3. Total paid-in capital is $120 million. At what average price per share were the common shares issued?
4. If retained earnings at the beginning of the period was $45 million and net income during the year was $9,907,500, how much was paid in dividends for the year?
5. If the treasury stock was purchased for $20 per share, how many shares were purchased?
6. How much was the dividend per share? (Hint: Dividends are not paid on treasury stock.)

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