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Stockholders’ Equity
15 - 17
Acquired 2,500 shares of its stock for $75,000.
Sold 2,000 treasury shares at $35 per share.
Sold the remaining treasury shares at $20 per share.
Assuming no other equity transactions occurred during 2007, what should Jinn report at
December 31, 2007, as total additional paid-in capital?
a. $895,000
b. $900,000
c. $905,000
d. $915,000
81.
Trent Corporation was organized on January 1, 2007, with an authorization of 1,200,000
shares of common stock with a par value of $6 per share. During 2007, the corporation
had the following capital transactions:
January 5
July 28
December 31
issued 675,000 shares @ $10 per share
purchased 90,000 shares @ $11 per share
sold the 90,000 shares held in treasury @ $18 per share
Trent used the cost method to record the purchase and reissuance of the treasury shares.
What is the total amount of additional paid-in capital as of December 31, 2007?
a. $-0-.
b. $2,070,000.
c. $2,700,000.
d. $3,330,000.
82.
Watt Co.'s stockholders' equity at January 1, 2007 is as follows:
Common stock, $10 par value; authorized 300,000 shares;
Outstanding 225,000 shares
Paid-in capital in excess of par
Retained earnings
Total
$2,250,000
900,000
2,190,000
$5,340,000
During 2007, Watt had the following stock transactions:
Acquired 6,000 shares of its stock for $270,000.
Sold 3,600 treasury shares at $50 a share.
Sold the remaining treasury shares at $41 per share.
No other stock transactions occurred during 2007. Assuming Watt uses the cost method
to record treasury stock transactions, the total amount of all additional paid-in capital
accounts at December 31, 2007 is
a. $891,600.
b. $870,000.
c. $908,400.
d. $927,600.
83.
Presented below is the stockholders' equity section of Mead Corporation at December 31,
2006:
Common stock, par value $20; authorized 75,000 shares;
issued and outstanding 45,000 shares
$ 900,000
Paid-in capital in excess of par value
250,000
Retained earnings
500,000
$1,650,000