Q 4 5

Juarez Corp. had the following stockholders equity accounts on Jan 1, 2021:

Common stock ($1.50 par, 700,000 shares issued and outstanding)	$1,050,000
Paid-In Capital in Excess of Par Common	$3,850,000
Retained earnings	$230,000

During 2021, the company had the following stock transactions.

Feb 3	Issued 20,000 shares of common stock for $9.50 per share
May 3	Purchased 1,400 shares for $8 per share
Aug 3	Sold 500 shares for $9 per share
Nov 3	Sold 400 shares for $6.50 per share

Juarezs 2021 net income totaled $74,000. Neither cash dividend nor stock dividend was declared during 2021.

4. What is the number of outstanding common shares as of December 31, 2021?

719,000

719,500

720,000

720,500

5. Which is not correct about the book value of stockholders equity accounts as of December 31, 2021?

		Common stock: $1,080,000
		Paid-In Capital in Excess of Par Common: $4,010,000
		Retained earnings: $304,000
		Treasury stock: ($4,000)