Question
ABC Company has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock ($2 par value), $1,000; Additional Paid-in Capital,
ABC Company has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock ($2 par value), $1,000; Additional Paid-in Capital, $4,100; Retained Earnings, $26,000; Total Stockholders' equity, $31,100. ABC Company has the following transactions affecting stockholders' equity in 2021: May 18 Issues 150 additional shares of $2 par value common stock for $25 per share. May 31 Purchases 60 shares of treasury stock for $45 per share. July 1 Declares a cash dividend of $1 per share to all stockholders of record on July 15. Hints Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 25 shares of treasury stock purchased on May 31 for $56 per ahare. December 31 Net income for the year ended December 31, 2021, is $800. Required: How many shares of common stock have been issued in total? O 650 O1150 590 1090 What is the balance of Retained Earnings on December 31, 2021? O $26,210 O $25,710 $25,650 O $26,710 What is the (debit) balance of the Treasury Stock account on December 31, 2021? O $25,710 O $25,650 O $26,710 What is the (debit) balance of the Treasury Stock account on December 31, 2021? O $1,575 O $1,300 O $1,960 O $2,700 What is the balance of Additional Paid-in Capital on December 31, 2021? $7,825 $7,275 $7,575 O $4,675 How is the number of outstanding shares on December 31, 2021? 615 1,115 115 1,035
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