Question

I was able to calculate everything except the Additional Capital. Can someone please help me? Please show me how you came up with the answer as well so I can understand how to do future problems, please.

The balance sheet caption for common stock is the following: 14.28 points Common stock without par value, 3,600,000 shares authorized, 830,000 shares issued, and 700,000 shares outstanding $3,200,000 Required: a. Calculate the average price at which the shares were issued. b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. c. If a cash dividend of $0.12 per share were declared, calculate the total amount of cash that would be paid to stockholders. d. What accounts for the difference between issued shares and outstanding shares? Answer is not complete. Required A Required B Required C Required D If these shares had been assigned a stated value of $1 each, show how the caption here would be different. $ 830,000 Common stock at stated value of $1 per share; 7,500,000 shares authorized, 3,000,000 issued and 2,700,000 shares outstanding Additional paid in capital Total paid in capital $ 830,000 < Required A Required C >

Answer 1

Stockholders Equity
Common Stock at stated value of $1 per share; 3,600,000 shares			Calculation
authorized; 830,000 issued and 700,000 shares outstanding	830,000
Additional paid in capital	2,370,000		=3,200,000-830,000
Total paid in capital	3,200,000
Note
Common stock value is 3,200,000. If stated value of $1 is assigned,
then Common stock value will be 830,000*$1 = 830,000
Remaining value = 3,200,000-830,000 = 2,370,000 will go to additional paid in capital