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3. Analysis of stockholders' equity

Star Corporation issued both common and preferred stock during19X6. The stockholders' equity sections of the company's balancesheets at the end of 19X6 and 19X5 follow.



19X6 19X5

Preferred stock, $100 par value, 10% $580,000 $500,000

Common stock, $10 par value 2,350,000 1,750,000


Paid-in capital in excess of par value

Preferred 24,000 —

Common 4,620,000 3,600,000

Retained earnings 8,470,000 6,920,000

Total stockholders' equity $16,044,000 $12,770,000


a. Compute the number of preferred shares that were issuedduring 19X6.

b. Calculate the average issue price of the common stock sold in19X6.

c. By what amount did the company's paid-in capital increaseduring 19X6?

d. Did Star's total legal capital increase or decrease during19X6? By what amount?

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Hubert Koch
Hubert KochLv2
29 Sep 2019

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Star corporation issued both common and predered stock during20X6. The stockholders' equity section of the company's balancesheets at the end of 20X6 and 20X5 follow:

20X6 20X5

Preferred stock, $100 par value,10% $580,000 $500,000

Common stock, $10 parvalue $2,350,000 $1,750,000


Paid-in capital in excess of par value

Preferred $24,000 -

Common $4,620,000 $3,600,000

Retainedearnings $8,470,000 $6,920,000

Total stockholders'equity $16,044,000 $12,770,000


a) compute the number of preferred shares that were issuedduring 20X6.

b) calculate the average issue price of the common stock sold in20X6.

c) by what amount did the company's paid-in capital increaseduring 20X6?

d) did Star's total legal capital increase or decrease during20X6? by what amount?


Please complete the following 7 exercises belowin either Excel or a word document (but must be single document).You must show your work where appropriate


3. Analysis ofstockholders' equity

Star Corporation issuedboth common and preferred stock during 20X6. The stockholders'equity sections of the company's balance sheets at the end of 20X6and 20X5 follow.

20X6

20X5

Preferred stock, $100 parvalue, 10%

$580,000

$500,000

Common stock, $10 parvalue

2,350,000

1,750,000

Paid-in capital in excessof par value

Preferred

24,000

—

Common

4,620,000

3,600,000

Retainedearnings

8,470,000

6,920,000

Total stockholders'equity

$16,044,000

$12,770,000

a. Compute the number of preferred shares that were issued during20X6.

b. Calculate the average issue price of the common stock sold in20X6.

c. By what amount did the company's paid-in capital increaseduring 20X6?

d. Did Star's total legal capital increase or decrease during20X6? By what amount?



Chapter 3 Problem3
3. Manufacturing statements and cost behavior

Tampa Foundry beganoperations during the current year, manufacturing various productsfor industrial use. One such product is light-gauge aluminum, whichthe company sells for $36 per roll. Cost information for the yearjust ended follows.

Per Unit

Variable Cost

Fixed Cost

Directmaterials

$4.50

$ —

Direct labor

6.5

—

Factoryoverhead

9

50,000

Selling

—

70,000

Administrative

—

135,000

Production and salestotaled 20,000 rolls and 17,000 rolls, respectively There is nowork in process. Tampa carries its finished goods inventory at theaverage unit cost of production.

Instructions:

a. Determine the cost of the finished goods inventory oflight-gauge aluminum.

b. Prepare an income statement for the current year endedDecember 31

c. On the basis of the information presented:

1. Does it appear that the company pays commissions to its salesstaff? Explain.

2. What is the likely effect on the $4.50 unit cost of directmaterials if next year's production increases? Why?

P.s. Please help me get the right answersand steps :D

Please complete the following 7 exercises belowin either Excel or a word document (but must be single document).You must show your work where appropriate


3. Analysis ofstockholders' equity

Star Corporation issuedboth common and preferred stock during 20X6. The stockholders'equity sections of the company's balance sheets at the end of 20X6and 20X5 follow.

20X6

20X5

Preferred stock, $100 parvalue, 10%

$580,000

$500,000

Common stock, $10 parvalue

2,350,000

1,750,000

Paid-in capital in excessof par value

Preferred

24,000

—

Common

4,620,000

3,600,000

Retainedearnings

8,470,000

6,920,000

Total stockholders'equity

$16,044,000

$12,770,000

a. Compute the number of preferred shares that were issued during20X6.

b. Calculate the average issue price of the common stock sold in20X6.

c. By what amount did the company's paid-in capital increaseduring 20X6?

d. Did Star's total legal capital increase or decrease during20X6? By what amount?



Chapter 3 Problem3
3. Manufacturing statements and cost behavior

Tampa Foundry beganoperations during the current year, manufacturing various productsfor industrial use. One such product is light-gauge aluminum, whichthe company sells for $36 per roll. Cost information for the yearjust ended follows.

Per Unit

Variable Cost

Fixed Cost

Directmaterials

$4.50

$ —

Direct labor

6.5

—

Factoryoverhead

9

50,000

Selling

—

70,000

Administrative

—

135,000

Production and salestotaled 20,000 rolls and 17,000 rolls, respectively There is nowork in process. Tampa carries its finished goods inventory at theaverage unit cost of production.

Instructions:

a. Determine the cost of the finished goods inventory oflight-gauge aluminum.

b. Prepare an income statement for the current year endedDecember 31

c. On the basis of the information presented:

1. Does it appear that the company pays commissions to its salesstaff? Explain.

2. What is the likely effect on the $4.50 unit cost of directmaterials if next year's production increases? Why?

P.s. Please help me get the right answersand steps :D

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