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8% preferred stock, $100 par $190,000 Common stock, no par 184,000 Premium on preferred stock 15,200 $389,200 Part a. A stockholder has raised the...
8% preferred stock, $100 par $190,000Common stock, no par 184,000Premium on preferred stock 15,200$389,200Part a.A stockholder has raised the following questions:1. What is the legal capital of the corporation?2. At what average price per share has the preferred stock been issued?Part b.The company engaged in the following transactions in 2010:Mar. 2Apr. 5 Sold 900 shares of common stock for $34 per share.Apr. 13Apr. 30May. 4Jun. 1Oct. 19Nov. 16 Reissued the 500 shares of treasury stock at $38 per share.Dec. 31Required:1. Answer the questions in part a.2. Prepare journal entries to record the transacations in part b.3. Prepare the Contributed Capital section of O'Toole's December 31, 2010 balance sheet.Reacquired 500 shares of common stock at $36 per share. The company uses the cost methodto account for treasury stock.Issued for $27,000 a combination of 500 shares of common stock and 100 shares of preferredstock. The common and preferred stock are currently selling for $35 and $125 per share,respectively.Distributed an $8 per share dividend on all preferred stock outstanding and a $2 per sharedividend on all common stock outstanding on this date (debit Retained Earnings and creditCash for each dividend).The O'Toole Corporation has been operating successfully for several years. It is authorized to issue 24,000shares of no-par common stock and 6,000 shares of 8%, $100 par preferred stock. The ContributedCapital section of its January 1, 2010 balance sheet is as follows:3. How many shares of common stock have been issued (the common stock has been issued at anaverage price of $23 per share)?
