Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bretton Software had the following selected account balances at December 31, 2018 (all numbers and amounts are in thousands, except par value per share): (Click

image text in transcribedimage text in transcribed

Bretton Software had the following selected account balances at December 31, 2018 (all numbers and amounts are in thousands, except par value per share): (Click the icon to view the account balances.) Read the requirements. Requirement 1. Prepare the stockholders' equity section of Bretton's balance sheet (in thousands). (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Enter all amounts as they are shown in the data table. Enter dollar amounts, except for par value and number of shares, in thousands. Use parentheses or a minus sign for numbers to be subtracted.) Balance Sheet (Partial) Stockholders' Equity: par, shares shares shares and Total paid-in capital Total stockholders' equity Requirement 2. How can Bretton have a larger balance of treasury stock than the sum of Common Stock and Paid-in Capital in Excess of Par? O A. The balance of the treasury account will always exceed the sum of the common stock and paid-in capital in excess of par accounts. Otherwise, companies would never purchase treasury shares. O B. The market price per share of Bretton's stock has gone down since the stock was initially sold. O C. Bretton paid a higher price to acquire treasury stock than the price Bretton received when it issued its stock. OD. Bretton paid a lower price to acquire treasury stock than the price Bretton received when it issued its stock. i Data Table 653 854 902 438 Inventory Property, plant and equipment, net....... Paid-in capital in excess of par Treasury stock, 130 shares at cost Accumulated other comprehensive income (loss) .... * Debit balance Common stock, $1.75 par per share, 1,000 shares authorized, 250 shares issued ................ $ Retained earnings............ Accounts receivable, net.... Notes payable............ 2,222 200 1,820 (730) * 1,100 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing And Assurance Services

Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson

5th Edition

1742168450, 978-1742168456

More Books

Students also viewed these Accounting questions