Stockholders' Equity
the Stockholders' Equity Section of the Balance Sheet

Stockholders' equity
The stockholders' equity section of the balance sheet of Creative Corporation at December 31, 2009, appears as follows:
Answer the following questions based on the stockholders' equity section given above. The company had no treasury stock transactions before 2009.
(a) What is the average price per share of preferred stock?
(b) How many shares of common stock are outstanding?
(c) A small stock dividend of 5,000 shares was declared and distributed during 2009. What was the market price per share on the date of declaration?
(d) If Creative Corporation had reacquired 7,000 shares of treasury stock early in 2009, compute the price per share for which the reissued treasury stock was sold.
(e) Assume all remaining treasury stock is reissued at a price of $12 per share in January of 2010.
Give the journal entry to record this transaction.
$\begin{array}{|l|l|}\hline\text { Stockholders' equity}\\\hline\text { \$ 5 preferred stock, \$ 100par, 100,000 shares authorized, }\\\text {50,000 shares issued}&\$800,000\\\hline\text { Common stock, } \$ 3 \text { par, } 100,000 \text { shares authorized, } \\50,000 \text { shares issued, of which } 5,000 \text { are held in treasury } & 150,000 \\\hline\text { Additional paid-in capital: } \\\hline\text { From issuance of preferred stock } & 160,000 \\\hline \text { From issuance of common stock } & 550,000 \\\hline \text { From treasury stock transactions } & 6,000 \\\hline \text { From common stock dividends } & \underline{130,000} \\\hline \text { Total paid-in capital } & \$ 1,796,000 \\\hline \text { Retained earnings ( } \$ 40,000 \text { cost of treasury stock is not } \\\text { available for dividends) }& \underline{\$ 750,000} \\\hline&\$ 2,546,000\\\text { Less: Treasury stock (at cost; } 5,000 \text { common shares) } & \underline{40,000} \\ \hline\text { Total stockholders' equity }& \underline{\$2.506,000} \\\hline \end{array}$