Question
XYZ Corporation reported the following selected amounts on its comparative balance sheet: Current Assets 2019 2020 Trading Securities $9,000 $5000 Available-for-Sale Securities $28,000 $14,000 Stockholders'
XYZ Corporation reported the following selected amounts on its comparative balance sheet:
Current Assets 2019 2020 Trading Securities $9,000 $5000 Available-for-Sale Securities $28,000 $14,000 Stockholders' Equity Common Stock ($1 par) $59,473 $145,511 Paid-in Capital in Excess of Par $164,667 $212,658 Paid-in Capital - Share Repurchase $8,188 $12,951 Retained Earnings $315,000 $400,000 Accumulated Other Comprehensive Income: Unrealized Gain on Available-for-Sale Securities $33,422 $57,574
The 2020 income statement of XYZ Corporation reports:
Net Income $216,313 Gain on the Sale of Available-for-Sale Securities $8,811
Additional Information:
During 2020, XYZ Corporation retired 1,000 shares of its common stock. These shares were originally issued for $10 per share. No other stock was retired.
There were no treasury stock transactions and no stock dividends during 2020. All issuances of common stock were in exchange for cash.
Determine the amount to be reported on the 2020 Statement of Cash Flows as "Cash Paid to Retire Common Stock".
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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