The financial statements of Home Depot

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1. The financial statements of Home Depot, Inc. appear in Appendix A which is listed at the link below. These statements contain information describing the details of the company’s stockholder’ equity.What is the par value of the company’s common stock? Did the common stock originally sell at, above, or below par value? How do you know this?Appendix A:http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CEYQFjAF&url=http%3A%2F%2Fcdn.transtutors.com%2FUploadAssignments%2F215176_2_Group-Homework-week-2.pdf&ei=iSWZUIHLENG20QGFsoDQDA&usg=AFQjCNGkas1xG0YAeX0QgT0IiAmno92gkQ 2. Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share. The company also sold 1,000 shares of $100 par value preferred stock for $110. Assume the balance in retained earnings is $100,000. Prepare the stockholders’ equity section of Beta’s balance sheet.SOLUTION:1) The par value of the company’s stock is $0.05 and the stock orginally sold at a value above the par i.e. at premium. The same can be analysed after evaluating thestockholders’ equity…

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