Please complete the following 7 exercises belowin either Excel or a word document (but must be single document).You must show your work where appropriate
3. Analysis ofstockholders' equity
Star Corporation issuedboth common and preferred stock during 20X6. The stockholders'equity sections of the company's balance sheets at the end of 20X6and 20X5 follow.
20X6
20X5
Preferred stock, $100 parvalue, 10%
$580,000
$500,000
Common stock, $10 parvalue
2,350,000
1,750,000
Paid-in capital in excessof par value
Preferred
24,000
ââ¬â
Common
4,620,000
3,600,000
Retainedearnings
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 during20X6.
b. Calculate the average issue price of the common stock sold in20X6.
c. By what amount did the company's paid-in capital increaseduring 20X6?
d. Did Star's total legal capital increase or decrease during20X6? By what amount?
Chapter 3 Problem3
3. Manufacturing statements and cost behavior
Tampa Foundry beganoperations during the current year, manufacturing various productsfor industrial use. One such product is light-gauge aluminum, whichthe company sells for $36 per roll. Cost information for the yearjust ended follows.
Per Unit
Variable Cost
Fixed Cost
Directmaterials
$4.50
$ ââ¬â
Direct labor
6.5
ââ¬â
Factoryoverhead
9
50,000
Selling
ââ¬â
70,000
Administrative
ââ¬â
135,000
Production and salestotaled 20,000 rolls and 17,000 rolls, respectively There is nowork in process. Tampa carries its finished goods inventory at theaverage unit cost of production.
Instructions:
a. Determine the cost of the finished goods inventory oflight-gauge aluminum.
b. Prepare an income statement for the current year endedDecember 31
c. On the basis of the information presented:
1. Does it appear that the company pays commissions to its salesstaff? Explain.
2. What is the likely effect on the $4.50 unit cost of directmaterials if next year's production increases? Why?
P.s. Please help me get the right answersand steps :D
Please complete the following 7 exercises belowin either Excel or a word document (but must be single document).You must show your work where appropriate
3. Analysis ofstockholders' equity
Star Corporation issuedboth common and preferred stock during 20X6. The stockholders'equity sections of the company's balance sheets at the end of 20X6and 20X5 follow.
20X6 | 20X5 | |
Preferred stock, $100 parvalue, 10% | $580,000 | $500,000 |
Common stock, $10 parvalue | 2,350,000 | 1,750,000 |
Paid-in capital in excessof par value | ||
Preferred | 24,000 | ââ¬â |
Common | 4,620,000 | 3,600,000 |
Retainedearnings | 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 during20X6.
b. Calculate the average issue price of the common stock sold in20X6.
c. By what amount did the company's paid-in capital increaseduring 20X6?
d. Did Star's total legal capital increase or decrease during20X6? By what amount?
Chapter 3 Problem3
3. Manufacturing statements and cost behavior
Tampa Foundry beganoperations during the current year, manufacturing various productsfor industrial use. One such product is light-gauge aluminum, whichthe company sells for $36 per roll. Cost information for the yearjust ended follows.
Per Unit | Variable Cost | Fixed Cost |
Directmaterials | $4.50 | $ ââ¬â |
Direct labor | 6.5 | ââ¬â |
Factoryoverhead | 9 | 50,000 |
Selling | ââ¬â | 70,000 |
Administrative | ââ¬â | 135,000 |
Production and salestotaled 20,000 rolls and 17,000 rolls, respectively There is nowork in process. Tampa carries its finished goods inventory at theaverage unit cost of production.
Instructions:
a. Determine the cost of the finished goods inventory oflight-gauge aluminum.
b. Prepare an income statement for the current year endedDecember 31
c. On the basis of the information presented:
1. Does it appear that the company pays commissions to its salesstaff? Explain.
2. What is the likely effect on the $4.50 unit cost of directmaterials if next year's production increases? Why?
P.s. Please help me get the right answersand steps :D
