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Abby Company has beginning of year balances as follows: Common stock, 12,000 shares $ 6,000 APIC 47,000 Retained earnings 38,000 The following transactions occurred in
- Abby Company has beginning of year balances as follows:
Common stock, 12,000 shares $ 6,000
APIC 47,000
Retained earnings 38,000
The following transactions occurred in this order during the year:
A 2-for-1 stock split with the par value being proportionately reduced.
4000 shares of treasury stock purchased at $52 per share.
Bonds payable of $9000 were converted into 3000 shares of common stock.
800 shares of treasury stock were sold for $60 per share.
A cash dividend of $2 per share was declared and issued.
Net income was $28,000.
Which of the following is true?
- Common stock increased by $1500, APIC increased by $6400, and Treasury stock increased by $166,400.
- APIC increased by $14,650, Treasury stock increased by $160,000 and Retained Earnings decreased by $19,600.
- Common stock increased by $750, APIC increased by $14,650, and Retained Earnings decreased by $19,600.
- Treasury stock increased by $166,400 and Retained Earnings decreased by $20,000.
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