Loudoun Corporation's balance sheet reflected the following information:Common stock, $2 par$ 140,000Paid-in capital in excess of par value-common210,000The stock listed on the balance sheet was issued in a single transaction.Required:What was the issue price per share of the stock?
What will be an ideal response?
$5 per share
Common stock account balance of $140,000 = Number of shares (unknown) × $2 Par value per share
Number of shares issued = $140,000 ÷ $2 = 70,000
Issue price per share = (Common stock account balance of $140,000 + Paid-in capital in excess of par-Common account balance of $210,000) ÷ 70,000 shares = $5 per share
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