The stockholders’ equity section on the December 31, 2011, balance sheet of American Corporation follows:

Stockholders’ Equity

___________________________________________________________

Contributed capital

Preferred stock (par $20; authorized 10,000 shares, ? issued,

of which 500 shares are held as treasury stock) $100,000

Common stock (no-par; authorized 20,000 shares, issued

and outstanding 8,000 shares) 600,000

Contributed capital (includes $1,500 from treasury

stock transactions) 16,500

Retained earnings 34,000

Cost of treasury stock, preferred (9,500)

Required:

Complete the following statements and show your computations.

1. The number of shares of preferred stock issued was ________.

2. The number of shares of preferred stock outstanding was ________.

3. The average sale price of the preferred stock when issued was $ ________per share.

4. Have the treasury stock transactions

(a) Increased corporate resources or

(b) Decreased resources? ________ By how much? ________.

5. The treasury stock transactions increased (decreased) stockholders’ equity by ________.

6. How much did the treasury stock held cost per share? $ ________.

7. Total stockholders’ equity is $ ________.

8. The average issue price of the common stock was $ ________.