Calculate the par value per share of preferred stock


Problem: Assist with DeZurik Corp Stockholders' Equity Balance Sheet.

DeZurik Corp. had the following stockholders' equity section in its June 30, 2013, balance sheet (in thousands, except share and per share amounts):

June 30
(in thousands)
Paid-in capital:    2013
$4.6 Preferred stock, $ ? par value, cumulative,

60,000 shares authorized, 21,000 shares issued
and outstanding    $    1,500

Common stock, $6 par value, 4,000,000 shares authorized,
900,000 shares issued, 709,000 shares outstanding

Additional paid-in capital on common stock    5,490

Retained earnings
Less: Treasury common stock, at cost, ? shares

Total stockholders' equity    $    15,360

Q1. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. (Round your answers to 2 decimal places. (e.g., 32.16))

Q2. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2013. (Enter your answer in thousands of dollars.)

Q3. What was the average issue price of common stock shown on the June 30, 2013, balance sheet? (Round your answer to 2 decimal places. (e.g., 32.16))

Q4. How many shares of treasury stock does DeZurik Corp. own at June 30, 2013?

Q5. Assume that the treasury shares were purchased for $18 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2013. (Enter your answer in thousands of dollars.)

Q6. Calculate the retained earnings balance at June 30, 2013, after you have completed parts (a)−(e). (Hint: Keep in mind that Treasury Stock is a contra account.) (Enter your answer in thousands of dollars.)

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Accounting Basics: Calculate the par value per share of preferred stock
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