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6 April, 11:04

The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information: Common stock, $3 par value $150,000 Additional paid-in capital-common 850,000 There have been two issues of stock since the corporation began business. The average issue price per share of stock was: Group of answer choicesa. $20.00 b. Not enough information to determine. c. $3.00 d. $17.00

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  1. 6 April, 13:15
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    a. $20.00

    Explanation:

    Given that

    Common Stock = $150,000

    Additional Paid-in Capital = $850,000

    Par Value per share = $3

    So,

    Number of shares issued = Common Stock : Par Value per share

    = $150,000 : $3

    = 50,000

    Now

    Total Common Stock Equity = Common Stock + Additional Paid-in Capital

    = $150,000 + $850,000

    = $1,000,000

    So,

    Average Issue Price per share = Total Common Stock Equity : Number of shares issued

    = $1,000,000 : 50,000

    = $20.00
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