orthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2024. In 2026, the company repurchased 30,000 shares for $300,000. When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity? 27, 15,000 of the repurchased shares were resold for $240,000. In its balance sheet dated December 31, 2027, C. Worthy's treasury stock account shows a balance of: Multiple Choice Multiple Choice O Decrease O $60,000 . O Increase O SO . O Cannot tell from the given information $300,000. No effect $150,000. The balance sheet of Messi Services included the following shareholders' equity section on December 31, 2024: The following partial information is taken from the comparative balance sheet of Levi Corporation: ($ in Shareholders' equity 12/31/2024 12/31/2023 Common stock, $5 par; 24 million shares authorized; 19 Common stock ($1 par, authorized 200 million shares, issued and outstanding 180 million shares) 1. 080 million shares issued and 13 million shares outstanding at 560 12/31/2024; and _ million shares issued and Retained earnings - shares outstanding at 12/31/2023. $ 95 million $ 65 million Total shareholders' equity $ 1, 820 Additional paid-in capital on common stock 524 million 394 million On January 5, 2025, Messi purchased 2 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in Retained earnings 201 million 161 million r and retained earnings accounts are: capital-excess of par and retained Treasury common stock, at cost, 6 million shares at 12/31/2024 and 4 million shares at 12/31/2023 (76 million) (54 million) Paid-in capital- Total shareholders' equity $ 744 million $ 566 million excess of par Retained earnings d. $ 1, 068 $ 556 What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2024? b. $ 1, 064 $ 560 $ 1 , 080 $ 560 d. $ 1, 080 $ 544 Multiple Choice Multiple Choice O $5 per share O Option A $27 per share O Option C $40 per share O Option B O Cannot be determined from the given information Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more than their acquisition price. What is the effect of the sale of the treasury stock on each of the following? Dempsey Company retires shares that it buys back. In its first share repurchase transaction, Dempsey purchased stock for more than the price at which the stock was originally issued. What is the effect of the purchase of the stock on each of the following? Retained earnings No effect Total paid-in capital Total paid-in capital Retained earnings No effect Increase No effect a. No effect No effect Increase Decrease No effect No effect Increase . Increase Decrease Decrease No effect Decrease Multiple Choice Multiple Choice O Option A Option D O Option B Option A Option C O Option C O Option D Option B
