The Torre Company Has the Following Stockholders' Equity Account Balances

Essay

The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31.
Common Stock - $5 par, 60,000 shares issued
$300,000
Paid­In Capital in Excess of Par-Common Stock
600,000
Preferred Stock - $100 par, 5,000 shares issued
500,000
Paid­In Capital in Excess of Par-Preferred
100,000
Retained Earnings
200,000
Treasury Stock cost - $12 per share)60,000
1. How many shares of treasury stock are owned?
2. What was the average market price per share at which common stock was issued?
3. What was the average market price per share at which preferred stock was issued?
4. What is the total value of the paid-in capital portion of stockholders' equity?
5. What is the total value of stockholders' equity?
6. How many shares of common stock are outstanding?
7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning value of retained earnings? How much is earnings per share for the year?