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I am having problem calculating how many shares did it sell and at what price ?


The equity of the balance sheet for JJ apears below:

Common stock, $ 0.60 par ????????
Paid in capital surplus $10,000,000
Retained Earnings $22,000,000

If the company originally raised $11,000,000 in its stock issue, how many shares did it sell and at what price ?

The word "surplus" is improper. I'll assume the amount is paid in capital in excess of par. In that case the par value of the shares issued was $1,000,000. So the company issued 1,666,667 shares:

$1,000,000 / $0.60 = 1,666,667

If it received $11,000,000 for the shares, the issue price was

$11,000,000 / 1,666,667 = $6.60 per share.

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