ACCT 221 - Homework 1 Quiz. Questions and Answers.

ACCT 221 - Homework 1 Quiz. Questions and Answers. Question 1 3 / 6 points The Common Stock account for Alpha Corporation on January 1, 2017 was $37,500. On June 1, 2017 Alpha issued an additional 4,500 shares of common stock. The Common Stock is $5 par. There was neither Preferred Stock nor any Treasury Stock. Paid in Capital Excess to par Common Stock was $10,000 on January 1 and $15,000 on June 2 and net income was $124,700. Use this information to determine for December 31, 2017 the amount of: a. Total Stockholders Equity b. Earnings per Share (rounded to the nearest penny) Answer for blank # 1: $199,700 (50 %) Answer for blank # 2: $12.79 ($199,700, $12.32) Hide Feedback Answer: a. $199,700 b. $12.32 Solution Notes: Total SHE = $37,500 + $22,500 + $15,000 + $124,700 = $199,700 EPS = $124,700 / ((7,500 shs x 5/12 year) + (12,000 shs x 7/12 year)) = $12.32