10 USE THE FOLLOWING INFORMATION FOR QUESTIONS #2-4: 11 12 Before Repurchase $200,000 13 Credit 14 40,000 $5.00 15 Common Stock # of Shares Outstanding Par Value per Share APIC in Excess of Par Value APIC Share Repurchases Retained Earnings 16 17 $1,000,000 $10,000 $1,500,000 $2,710,000 Credit Credit Credit 18 19 20 21 $20.00 per share 16,000 22 23 Common Shares are repurchased at Common Shares reacquired *These shares are NOT retired Additional Facts: Common Shares reissued (sold) Common Shares (sold) for 24 25 16,000 $18.00 26 per share 27 33 34 35 36 37 3. What is the ending balance in the APIC-Share Repurchases account after the reissuance? A. $218,000 Credit B. $0 Credit C. $10,000 Debit D. $138,000 Credit 38 39 40 41 42 43 44 4. What is the impact to Retained Earnings from the reissuance journal entry? A. $22,000 Debit B. $22,000 Credit C. $32,000 Debit D. No impact, Retained Earnings is not one of the accounts used in that journal entry 45 46