For the current year ended, ABC had the following transactions:
- Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.
Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.
a.Treasury stock
b.Retained earnings
c.Preferred stock
d.Excess of issue price over par (preferred)e.Common stock
f.Total paid-in capital
g.Excess of issue price over par (common)h.Total stockholders' equity
-$15,000

Question

For the current year ended, ABC had the following transactions:
- Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.​
Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.​
a.Treasury stock
b.Retained earnings
c.Preferred stock
d.Excess of issue price over par (preferred)e.Common stock
f.Total paid-in capital
g.Excess of issue price over par (common)h.Total stockholders' equity
-$15,000

Quizplus · Accepted Answer

The Answer of For the current year ended, ABC had the following transactions:
- Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.​
Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.​
a.Treasury stock
b.Retained earnings
c.Preferred stock
d.Excess of issue price over par (preferred)e.Common stock
f.Total paid-in capital
g.Excess of issue price over par (common)h.Total stockholders' equity
-$15,000

For the Current Year Ended, ABC Had the Following Transactions