On January 1, 2013, Bogie Corporation had 40,000 common shares outstanding issued at $16 each during 2012. On June 1, 2013, Bogie Corporation issued 5,000 shares of its common shares at $15 per share. On September 30, 2013, Bogie Corporation repurchased 3,000 shares of its common shares for $17 per share. On November 30, 2013, Bogie Corporation reissued 2,000 shares of repurchased shares at $18 per share. The balance in Share Capital on December 31, 2013, as shown on the statement of shareholders' equity, is:

Question

Quizplus · Accepted Answer

The initial issuance of 40,000 common shares at $16 each resulted in a share capital of 40,000 x $16 = $640,000.

The issuance of 5,000 shares at $15 per share added $75,000 to the share capital (5,000 x $15).

The repurchase of 3,000 shares decreased the share capital by $51,000 (3,000 x $17).

The reissuance of 2,000 shares at $18 per share increased the share capital by $36,000 (2,000 x $18).

Therefore, the total share capital on December 31, 2013, is:

$640,000 + $75,000 - $51,000 + $36,000 = $700,000

Therefore, the best choice is C.

On January 1, 2013, Bogie Corporation Had 40,000 Common Shares