Question

The Stockholders' Equity category of Nettle Corp. balance sheet appears below.

Common stock, $10 par, 10,600 shares issued, 9,200 outstanding	$ ?
Additional paid-in capital	?
Total contributed capital	$308,000
Retained earnings	94,000
Treasury stock, ? shares at cost	9,500
Total stockholders' equity	$ ?

Required:

1. Determine the missing values indicated by question marks.

Common stock total par value	$
Additional paid-in capital	$
Total stockholders' equity	$
Number of shares of treasury stock		shares

2. What was the cost per share of the treasury stock? Round your answer to the nearest cent.
$ per share

Answer 1

Requirement 1:

Common stock total par value	$92,000
Additional paid-in capital	$216,000
Total stockholders' equity	$392,500
Number of shares of treasury stock	1,400 shares

Calculations:

Common stock outstanding shares	9,200
x Par value	$10
= Common stock total par value	$92,000
Total contributed capital	$308,000
(Less): Common stock	($92,000)
Additional contributed capital	$216,000
Total contributed capital	$308,000
Retained earnings	$94,000
(Less): Treasury stock	($9,500)
Total Stockholders' equity	$392,500
Common stock issued shares	10,600
Less: Common stock outstanding shares	-9,200
Number of shares of treasury stock	1,400

Requirement 2:

Cost per share of treasury stock = $9,500/1,400 shares = $6.79