Evergreen Manufacturing Corporation purchased 5,000 shares of its own previously issued $10 par common stock for $115,000. As a result of this event,

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When a company purchases its own stock, it reduces the number of outstanding shares and therefore reduces its total stockholders' equity. In this case, Evergreen Manufacturing Corporation purchased 5,000 shares of its own common stock for $115,000, which means the total stockholders' equity decreased by $115,000. The Common Stock account and the Paid-in Capital in Excess of Par account are not directly affected by the stock repurchase.

Evergreen Manufacturing Corporation Purchased 5,000 Shares of Its Own Previously