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Question
The shareholders equity section of Samuels Company were reported on the balance sheets for December 31:
| 2015 | 2014 | |
| Preferred stock (9%, $50 par value) | $200,000 | $120,000 |
| Common stock ($6 par value, 750,000 shares authorized, 90,000 issued and 5,000 held in treasury) | 540,000 | 396,000 |
| Additional paid-in capital: | ||
| Preferred stock | 155,000 | 55,000 |
| Common stock | 336,000 | 300,000 |
| Retained earnings | 575,000 | 495,000 |
| Less: Treasury stock | (110,000) | -------- |
| Total shareholders equity | $2,180,000 | $1,688,000 |
Based on this information, how many shares of common stock were issued in 2015 and what was the average issue price?
a. 21,000 shares and $7.82 per share
b. 30,000 share and $6.00 per share
c. 85,000 shares and $9.73 per share
d. 24,000 shares and $7.50 per share
Answer
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