Question

Use the following information to answer the next 3 questions:

Answer 1

Answer:

Check the following calculations

Explanation:

Answer [a]

Preferred stock shares issued and outstanding = $ 105,000 / $ 50 par value = 2,100 shares

Answer [b]

Common Stock shares outstanding = Total issued – Treasury stock shares

= ($40000 / $4 par) – 4000 shares

= 10000 – 4000

= 6,000 shares

Answer [c]

Cost of Treasury shares = $ 15000 / 4000 shares = $ 3.75