Allenton Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): Common stock........................................
Question:
Allenton Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions):
Common stock........................................ $ 243
Additional paid-in capital.......................... 231
Retained earnings.................................. 2,149
Treasury stock......................................... (601)
Total stockholders’ equity .................. $2,022
During the next year, Allenton purchased treasury stock at a cost of $22 million and resold treasury stock for $10 million (this treasury stock had cost the company $2 million). Record the purchase and resale of Allenton’s treasury stock. Overall, how much did stockholders’ equity increase or decrease from the two transactions?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.