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Why isn't PIC-in excess of Par debited by 8 instead of 6 and why is Retained Earnings debited at all? The balance sheet of Chunn
Why isn't PIC-in excess of Par debited by 8 instead of 6 and why is Retained Earnings debited at all?
The balance sheet of Chunn Industries included the following shareholders' equity section at December 31, 2018 ($ in millions): Common stock ($1 par value, authorized 100M shares, issued and outstanding 90M shares) $ 90 Paid-in capital-excess of par 540 Retained earnings 280 Total shareholders' equity $910 On January 5, 2019, Chunn purchased and retired 1 million shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital-excess of par and retained earnings accounts are: Paid-in capital Retained - Dr.us I -excess of par earnings Dr. Pic-paro a. $540 $280 b. $540 $272 C. $534 $278 d. $532 $280 q Cr. Cash Dr. RE 2DStep by Step Solution
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