Q
Subject:AccountingPrice: Bought3
Q.2 ) The year-end balance sheet of Searfoss, Inc., includes the following stockholders' equity section: (5 Marks) $1,000,000 Stockholders' Equity: Capital stock: 10% cumulative preferred stock, $100 par value.. Common stock, $10 par value, $ 500,000 shares authorized, 200,000 issued and outstanding... Additional Paid-in-capital: common stock... Total Paid-in-capital: capital stock... Retained Earnings... Total Stockholders' Equity. 2,000,000 500,000 $3,500,000 3000,000 $6,500,000 From this information, compute answers to the following questions: a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends to which preferred stockholders are entitled? c. What was the average issuance price per share of common stock? d. What is the amount of legal capital and the amount of total paid-in-capital? e. What is the book value per share of common stock assuming no dividends in arrears?
