Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow:
|
20X6
|
20X5
|
|
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 issued during 20X6.
b.Calculate the average issue price of the common stock sold in 20X6.
c.By what amount did the company's paid-in capital increase during 20X6?
d.Did Star's total legal capital increase or decrease during 20X6? By what amount?