On January 1, 2013, Automatic Train Corporation had 30,000 common shares outstanding issued at $10 each. On June 1, 2013, Automatic Train Corporation issued 12,000 shares of its common shares at $15 per share. On November 30, 2013, Automatic Train Corporation repurchased 3,000 shares of its common shares for $17 per share. The balance in Common shares on December 31, 2013, as shown on the statement of shareholders' equity, is:

Question

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To solve this problem, we need to keep track of the changes in common shares throughout the year:

- Starting balance: 30,000 shares x $10 = $300,000
- June 1: 12,000 shares x $15 = $180,000 (new shares issued)
- November 30: 3,000 shares x $17 = $51,000 (shares repurchased)

The total amount of common shares issued and outstanding at the end of the year is:

- 30,000 + 12,000 - 3,000 = 39,000 shares

The total amount of money received from issuing new shares is:

- 12,000 shares x $15 = $180,000

The total amount of money paid to repurchase shares is:

- 3,000 shares x $17 = $51,000

The balance in Common shares on December 31, 2013, is calculated as follows:

- 39,000 shares x $10 (par value) = $390,000

Therefore, the answer is C) $445,714, which represents the balance in common shares after taking into account the changes in share issuance and share repurchase during the year.

On January 1, 2013, Automatic Train Corporation Had 30,000 Common