Question

Exercise 15-10 For a recent 2-year period, the balance sheet of Oriole Company showed the following stockholders’ equity data at December 31 (in millions). 2017 2016 Additional paid-in capital $ 930 $ 843 Common stock 651 642 Retained earnings 7,210 5,220 Treasury stock 1,850 945    Total stockholders’ equity $6,941 $5,760 Common stock shares issued 217 214 Common stock shares authorized 500 500 Treasury stock shares 37 27 (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) Par value of common stock $ (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? December 31, 2017 December 31, 2016 Cost per share of Treasury stock $ $ (b) Prepare the stockholders’ equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) Oriole Company Balance Sheet (in millions of dollars) (Partial)

Answer 1

Par value of common stock =Common stock /number of shares issued

   For 2017 :   651/217 =$ 3 per share

For 2016 :642/214 = $ 3 per share

so Par value = $ 3 per share

2)

	December 31, 2017	December 31, 2016
Cost per share of Treasury stock   [Cost of treasury stock /number of shares in treasury]	1850/37 =$ 50 per share	945/27 = $ 35per share

b)

Oriole Company Balance Sheet (in millions of dollars) (Partial)
Stockholders equity
Common stock 500 shares authorized ,$ 3 par,217 shares issued	651
Additional paid-in capital	930
Total paid in capital	1581
Retained earning	7210
Total paid in capital and retained earning	8791
less:Treasury stock (37 shares )	(1850)
Total stockholders equity	6941