During the year,Todd Corporation issued 200 shares of $20 par value common stock for $50 a share.A total of 500 shares were authorized.In addition,the company purchased 75 shares of treasury stock at $44 a share.Which of the following best presents the related lines in the stockholders' equity section of the company's balance sheet?

Question

Quizplus · Accepted Answer

Common stock is reported at $4,000 (or 200 Shares issued × Par value of $20 per share).
Paid-in capital in excess of par value-Common is reported at $6,000 [or 200 Shares issued × $30 (Original issue price of $50 per share ? Par value of $20 per share)].
The Treasury Stock account is a contra equity account that is deducted from the other equity accounts in determining total stockholders' equity. It is reported at $3,300 (or 75 Shares purchased × Purchase price of $44 per share).

During the Year,Todd Corporation Issued 200 Shares of $20 Par