Tuesday, June 14, 2011

Questions Set 85: Solution

Matterhorn Company’s charter allows it to sell 250,000 shares of $2 par value common stock. To date, the firm has sold 100,000 shares for a total of $600,000. Matterhorn has reacquired 4,000 shares from shareholders at a price of $8 per share. Retained earnings equals $250,000. (10 points)
    • What total amount of contributed capital should Matterhorn report?
    • What amount should be reported for the Common Stock account?
    • What was the average selling price of each share of common stock?
    • How many shares of stock are outstanding?
    • What amount should be reported for stockholders’ equity?

No comments:

Post a Comment