Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

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The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:

$11.5

Explanation:

The data that was gotten from Keller company stockholders equity account include:

Amount shares in common stock is 20,000 shares

The number of issued shares is 10,000

Number of outstanding shares is 9,000

The excess paid-in capital is $100,000

The common stock is 50,000

The retained earnings is 25,000

Treasury stock is 11,500

The first step is to calculate the amount of shares that was acquired in the treasury stock

= Number of issued shares-number of outstanding shares

= 10,000-9,000

= 1,000

Therefore, the cost per share of the stock in the treasury can be calculated as follows

= Treasury stock value/amount of shares acquired

= 11,500/1,000

= 11.5

Hence the cost per share of the treasury stock is $11.5

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