CGJ Company has provided the following:
200,000 shares of $5 par value common stock are authorized;
140,000 shares of common stock were issued for $11 per share;
130,000 shares are outstanding.
Which of the following statements is false?
A)Common stock is reported at $700,000 on the balance sheet.
B)Additional-paid in capital is reported at $840,000 on the balance sheet.
C)Stockholders' equity decreased $110,000 when the treasury stock was purchased.
D)There are 10,000 shares of treasury stock.

Question

CGJ Company has provided the following:
200,000 shares of $5 par value common stock are authorized;
 140,000 shares of common stock were issued for $11 per share;
 130,000 shares are outstanding.
Which of the following statements is false?
A)Common stock is reported at $700,000 on the balance sheet.
B)Additional-paid in capital is reported at $840,000 on the balance sheet.
C)Stockholders' equity decreased $110,000 when the treasury stock was purchased.
D)There are 10,000 shares of treasury stock.

Quizplus · Accepted Answer

The amount paid for the treasury stock is not known.

CGJ Company Has Provided the Following