(Solution) - The stockholders equity section on the December 31 2009 balan -(2025 Original AI-Free Solution)

Paper Details

The stockholders? equity section on the December 31, 2009, balance sheet of Chemfast Corporation follows:
Stockholders? Equity
Contributed capital
Preferred stock (par $20; authorized 10,000 shares, ?
issued, of which 500 shares are held as treasury stock) .... $100,000
Common stock (no-par; authorized 20,000 shares,
issued and outstanding 8,000 shares) ........... 600,000
Contributed capital (includes $1,500 from treasury
stock transactions) .................. 16,500
Retained earnings .................... 34,000
Cost of treasury stock, preferred .............. (9,500)

Required:
Complete the following statements and show your computations.
1. The number of shares of preferred stock issued was ________.
2. The number of shares of preferred stock outstanding was ________.
3. The average sale price of the preferred stock when issued was $________ per share.
4. Have the treasury stock transactions (a) increased corporate resources or (b) decreased resources? ________ By how much? ________.
5. The treasury stock transactions increased (decreased) stockholders? equity by ________.
6. How much did the treasury stock held cost per share? $ ________.
7. Total stockholders? equity is $ ________.
8. The average issue price of the common stock was $ ________.