The Shareholders' Equity Sections of Samuels Company as Reported on the Balance

question 5

Multiple Choice

The shareholders' equity sections of Samuels Company as reported on the balance
Sheets for December 31 were:
$$\begin{array} { | l | r | r | } \hline &{ \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 16 } } \\\hline \text { Preferred stock (9\%, } \$ 50 \text { par value) } & \$ 200,000 & \$ 120,000 \\\hline \begin{array} { l } \text { Common stock (\$10 par value, } 750,000\text { shares} \\\text { autharized, } 54,000 \text { issued and } 5,000\text { held in} \\\text { treasury) }\end{array} & 540,000 &3 9 6 , 0 0 0 \\\hline \text { Additianal paid-in capital: } & & \\\hline \text { Preferred stock } &155,000 &5 5 , 0 0 0 \\\hline \text { Camman stock } & 3 3 6 , 0 0 0 & 30 0 , 0 0 0 \\\hline \text { Retained earnings } &575,000&495,000\\\hline \text { Less: Treasury stack } & \underline{(110,000) }& ---- \\\hline \text { Total sharehalders' equity } & \underline{\$ 1,696,000 } & \underline{\$1,366,000} \\\hline\end{array}$$
Based on this information, how many shares of preferred stock were issued in 2017 and what was the average issue price?

• A)4,000 shares and $112.50 per share
• B)160 shares and $88.75 per share
• C)800 shares and $250 per share
• D)1,600 shares and $112.50 per share

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Definitions:

Schwann Cells

Schwann cells are a type of glial cell located in the peripheral nervous system, responsible for the formation of myelin sheaths around neurons, which helps speed up the transmission of nerve impulses.

Fascicle

A bundle of skeletal muscle fibers surrounded by connective tissue, contributing to the structure and function of muscles.

Neurofibrils

Fine, thread-like structures within neurons that provide support and nutrient transportation throughout the nerve cell.

Node of Ranvier

Gaps in the myelin sheath of a nerve fiber, allowing for rapid conduction of nerve impulses.