The stockholders equity of ARCOS, Ltd. at January 1^st, 2021 is as follows:

ARCOS, Ltd
Stockholders equity
1 January 2021
Common stock, $10 par value			3.000.000
Additional paid in capital common stocks			6.000.000
Retained earnings			1.000.000
Total stockholders Equity			10.000.000

On 21th of July, the company issued $1,000,000 10% non cumulative preferred stocks for $1,100,000 On 24th of August, the company purchased 100,000 treasury stocks at a price of $25 per share On September 15, the company reissued 90,000 of its treasury stocks for $27 per share The company expects an income before interests and taxes of $2,500,000 at December 31, 2021 Corporation tax is at a 25% rate.

1. Record the transactions of the company on the General Journal

2. Calculate the average issuance price of the common stocks at January 1, 2021

Answer rating: 100% (QA)

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