Chapter 11, Problem 7E

Finding Amounts Missing from the Stockholders' Equity Section

The stockholders’ equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts:

Contributed Capital
Preferred Stock (par $20; authorized 10,000 shares, ? issued,
of which 1,000 shares are held as treasury stock)	$104,000
Additional Paid-in Capital, Preferred	14,300
Common Stock (no-par; authorized 20,000 shares, issued and
outstanding 6,000 shares)	600,000
Retained Earnings	30,000
Treasury Stock, 1,000 Preferred shares at cost	9,500

Assume that no shares of treasury stock have been sold in the past.

Required:

Complete the following statements and show your computations.

1. 1. The number of shares of preferred stock issued was_____.
2. 2. The number of shares of preferred stock outstanding was____.
3. 3. The average issue price of the preferred stock was $____ per share.
4. 4. The average issue price of the common stock was $___.
5. 5. The treasury stock transaction increased (decreased) stockholders’ equity by____.
6. 6. The treasury stock cost $____ per share.
7. 7. Total stockholders’ equity is $____.