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Star Corporation issued both common and preferred stock during 20X8. The stockholders'...

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user206956 | eNotes Newbie

Posted October 22, 2013 at 3:28 AM via web

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Star Corporation issued both common and preferred stock during 20X8. The stockholders' equity sections of the company's balance sheets at the end of 20X8 and 20X7 follow. 20X8 20X7 Preferred stock, $100 par value, 10% $600,000 $500,000 Common stock, $10 par value 2,350,000 1,550,000 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 $16,064,000 $12,570,000 a. Compute the number of preferred shares that were issued during 20X8. b. Calculate the average issue price of the common stock sold in 20X8. c. By what amount did the company's paid-in capital increase during 20X8? d. Did Star's total legal capital increase or decrease during 20X8? By what amount?

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