The Following Amounts Were Reported by Ebert Corporation on December

question 103

Short Answer

The following amounts were reported by Ebert Corporation on December 31,2009:
$\begin{array}{lr}\text { Common stock- } \$ 5 \text { par value } & \$ 150,000 \\\text { Additional paid-in capital } & 120,000 \\\text { Treasury stock }(8,000 \text { shares at cost }) & 60,000\end{array}$
On January 3,2010,5,000 shares of treasury stock were sold.After the sale of the treasury shares,total stockholders' equity amounted to $277,500.No stockholders' equity transactions other than the sale of the treasury stock occurred between December 31,2009,and January 3,2010.From the information given,compute the selling price per share of the treasury stock.

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Definitions:

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Credit in finance represents a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Transaction

A financial event that changes the balance of two or more accounts.

Debt Ratio

Debt ratio is a financial ratio that measures the extent of a company's leverage by comparing its total debt to its total assets.