The Torre Company Has the Following Account Balances in Stockholders

question 143

Essay

The Torre Company has the following account balances in stockholders' equity on December 31.
​ $\begin{array}{lr}\text { Common Stock }-\$ 5 \text { par, } 60,000 \text { shares issued } & \$ 300,000 \\\text { Paid-In Capital in Excess of Par-Common Stock } & 600,000 \\\text { Preferred Stock }-\$ 100 \text { par, } 5,000 \text { shares issued } & 500,000 \\\text { Paid-In Capital in Excess of Par-Freferred } & 100,000 \\\text { Retained Earnings } & 200,000 \\\text { Treasury Stock (cost }-\$ 12 \text { per share) } & 60,000\end{array}$ ​
Answer the following questions:
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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?
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4. What is the total value of the paid-in capital portion of stockholders' equity?
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5. What is the total value of stockholders' equity?
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6. How many shares of common stock are outstanding?
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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?

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Washing

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Conditional Contract

An agreement that becomes enforceable only after certain conditions are met or fulfilled.

Condition Precedent

In a contract, an event that must occur in order for a party’s duty to arise.

Math

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