Hex Corporation Showed the Following Amounts in the Equity Section

question 57

Short Answer

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \\\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \\\hline \text { Retained Earnings } & \$ 500,000 \\\hline\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-What is the average issue price per common share for 2021?

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Definitions:

Capital Expenditures

Investments in physical assets like equipment, buildings, and property to enhance or acquire new business operations.

Utility

An economic term for the total satisfaction received from consuming a good or service.

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted to cash in the short term.

Accounting Period

A specific duration of time for which financial statements are prepared, often a fiscal quarter or year, used to measure financial performance.