Question

reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value per share $98,000 Additional Paid-in Capital , Common Stock 600,000 Retained Earnings 900,000 Total Stockholders' Equity $1,598,000 What was the average selling price for the common stock issued (rounded to the nearest cent)?

Answer 1

Answer:

See below

Explanation:

We will use the formula below to calculate the average selling price for the common stock issued

Common stock issued average selling price = Paid in capital in excess of par Common ÷ Common stock per value per share

= ($600,000 + $98,000) ÷ ($98,000/0.1)

= $698,000 ÷ $980,000

= $0.71

Hence, the average selling price for the common stock issued is $0.71