accounting problem

[Journer]

so i am completely stumped (again) on some homework because our ***** teacher doesnt explain things. ive read the book and still cant get this...anyone know how the hell you get the two circled numbers?

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[ChaoZ]

Common stock = 6900 X .8 = 5520. Because there are 6900 shares issued at $.8 each. Still trying to remember how you get PIC.

Edit: So the PIC is how much extra money they made in excess of par value. Say that a stock has a stated value of $1 per share, but it actually sold for $3/share. So PIC is how much extra money they got, in this case it's an extra $2 per share.

So the stock in the problem is stated at $.8/share, but sold at $11.3/share.
11.3 - .8 = 10.5 x 6900 = 72450.

 

[BrunoPuntzJones]

Originally posted by: ChaoZ
Common stock = 6900 X .8 = 5520. Because there are 6900 shares issued at $.8 each. Still trying to remember how you get PIC.

Edit: So the PIC is how much extra money they made in excess of par value. Say that a stock has a stated value of $1 per share, but it actually sold for $3/share. So PIC is how much extra money they got, in this case it's an extra $2 per share.

So the stock in the problem is stated at $.8/share, but sold at $11.3/share.
11.3 - .8 = 10.5 x 6900 = 72450.

Correct

 

[Journer]

thanks fellas

 

[Injury]

So did you learn from this or did they just do the homework for you?

 

[EagleKeeper]

Requests for home work assistance are not acceptable.

clues yes, answers NO.

 

[SpiderWiz]

Did you try calling 911?