Answer Happy

Problem 2 (12 Points) The following items were shown on the balance sheet of ELO Corporation on December 31, 2021: Stockholders' equity Paid-in capital Capital stock Common stock, $5 par value, 800,000 shares authorized; shares issued and Additional paid-in capital In excess of par.. Total paid-in capital. Retained earnings...... Total paid-in capital and retained earnings. Less: Treasury stock (8,000 shares).. Total stockholders' equity... Instructions Complete the following statements and show your computations. (a) The number of shares of common stock issued was outstanding... (b) The number of shares of common stock outstanding was (c) The total sales price of the common stock when issued was $ (d) The cost per share of the treasury stock was $ (e) The average issue price of the common stock was $ $3,000,000 1.800.000 4,800,000 1.850.000 6,650,000 42.000 $6.608.000 (f) Assuming that 20% of the treasury stock is sold at $8 per share, the balance in the Treasury Stock account wou be: ||
Problem 4 (18 Points) Turner Inc. is considering two alternatives to finance its construction of a new $4 million plant. (a) Issuance of 500,000 shares of common stock at the market price of $10 per share. (b) Issuance of $5 million, 6% bonds at par. Instructions Complete the following table. You MUST show your work to receive full credit. Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (40%) Net income Outstanding shares Earnings per share Issue Stock $10,000,000 S S Issue Bonds $10,000,000 $ $ 2.000.000 ||