Question Details

The number of shares of common stock outstanding 




1
1. Name at least three factors that influence the market value of stock.
2. Corporations acquire treasury stock for a variety of purposes. Name three reasons why
treasury stock may be acquired by a corporation.


2
The following items were shown on the balance sheet of Herman Corporation on December 31,
2008:
Stockholders’ Equity
Paid-In Capital
Capital Stock
Common stock, $5 par value, 360,000 shares
authorized; ______ shares issued and ______ outstanding ................... $1,650,000
Additional paid-in capital
In excess of par value.............................................................................. 165,000
Total paid-in capital............................................................................ 1,815,000
Retained Earnings............................................................................................... 750,000
Total paid-in capital and retained earnings.............................................. 2,565,000
Less: Treasury stock (15,000 shares) ................................................................ (180,000)
Total stockholders' equity ........................................................................ $2,385,000
Instructions
Complete the following statements and show your computations.
(a) The number of shares of common stock issued was _______________.
(b) The number of shares of common stock outstanding was ____________.
(c) The sales price of the common stock when issued was $____________.
(d) The cost per share of the treasury stock was $_______________.
(e) The average issue price of the common stock was $______________.
(f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the
Treasury Stock account would be $_______________.




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