Question

Chapter Ten Homework Helo Save & Ext Submit Check my work mode: This show what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return toqution Required information The following information apples to the questions volyes belowy Part of The stoc cho ders equity section of Velcro World is gresented here ($id shuts in Llund) Stockholders' AU Ferru c k, $1 pu Yulu Contok Sa walu la Lunul puiul in supilul 20, na 15, 3 اله الله ايه دقه با مد 1 دله بالله ولا s Truary Luik, 10,9 Total stockholders' equity Based on the stock noders epulty section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands 3. If the common shares were issued a $20 per have a walaverage orice per share were the preferred share issued Answer is complete but not entirely correct. Th=IH TP. H = I =118: 18 12 2 + x H H

Answer 1

$ 5,000 $ 20,000 $ 575,000 $ 600,000 preferred share, $1 par value common share, $1 par value additiona paid in capital total paid in capital number of common shares issued $20,000 / $1 = 20,000 shares total paid in capital from common shares 20,000 * $20 = 3 $400,000 number of preferred shares issued $5,000 / $1 = 5,000 shares total paid in capital from common shares $600,000 $400,000 = $200,000 average issue price of preferred share $200,000 5,000 $40 $ 40 preferred share issue price per share

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