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:

Saliva

A watery fluid secreted into the mouth by glands, containing enzymes that initiate the breakdown of carbohydrates during digestion.

Divided

Separated into parts or pieces; often used to describe roads or cells that split into two or more pathways or segments.

Lobes

Divisions or sections of an organ separated by fissures, especially in the brain, lungs, and liver.

Lingual Frenulum

A fold of mucous membrane in the midline of the underside of the tongue, connecting the tongue to the floor of the mouth.