Question
ABC Company has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock ($2 par value), $900; Additional Paid-in
ABC Company has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock ($2 par value), $900; Additional Paid-in Capital, $3,900; Retained Earnings, $27,000; Total Stockholders' equity, $31,800. ABC Company has the following transactions affecting stockholders' equity in 2021: May 18 Issues 200 additional shares of $2 par value common stock for $20 per share. May 31 Purchases 60 shares of treasury stock for $40 per share. July 1 Declares a cash dividend of $1 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 20 shares of treasury stock purchased on May 31 for $56 per share. December 31 Net income for the year ended December 31, 2021, is $800. Required: What is the balance of Retained Earnings on December 31, 2021? O $27,210 $26,760 $26,700 $27,660 What is the (debit) balance of the Treasury Stock account on December 31, 2021? $1,600 $1,280 $2,240 $2,400 What is the balance of Additional Paid-in Capital on December 31, 2021? $7,820 $7,180 $7,580 $4,620 How is the number of outstanding shares on December 31, 2021? O 610 O 1,060 O 160 940
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started