In: Accounting
he following information pertains to Sam Corp. as of January 1, Year XXX1: | |||||||||
Common stock, $11 par, 10,000 shares authorized, 2,000 shares issued and outstanding | $22,000 | ||||||||
Paid-in capital in excess of par, common stock | $16,100 | ||||||||
Retained earnings | $54,500 | ||||||||
Sam Corp. completed the following transactions during the year XXX1: | |||||||||
1) Issued 1,150 shares of $11 par common stock for $29 per share on March 1st. | |||||||||
2) Repurchased 170 shares of its own common stock for $26 per share on July 1st. | |||||||||
3) Resold 50 shares of treasury stock for $27 per share on October 1st. | |||||||||
Select ALL statements that are TRUE |
A. |
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B. |
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C. |
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D. |
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E. |
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Balance in Treasury stock : | |||||||||
Number of treasury stock held (170-50) | 120 | ||||||||
Multiply: Cost per share purchsed | 26 | ||||||||
balance in treasury stock: | 3120 | ||||||||
Treasury stock reduced by (50 shares @26) | 1300 | ||||||||
Number of shares outstanding: | |||||||||
Beginning issued shares | 2000 | ||||||||
Add: Additional shares issued | 1150 | ||||||||
Less: Shares held as treasury stock | 120 | ||||||||
Number of shares outstanding: | 3030 | ||||||||
Paid in Capital in excess of Par-Common Stock: | |||||||||
Beginning balance | 16100 | ||||||||
Add: Proceeds from Issued shares (1150*18) | 20700 | ||||||||
Balance in Paid in capital in excess of Par-Common | 36800 | ||||||||
Cash flows from Transactions: | |||||||||
Proceeds from Issuance of shares (1150*29) | 33350 | ||||||||
Add: Proceeds from sale of treasury (50*27) | 1350 | ||||||||
Less: Purchase of Treasury stock (170*26) | -4420 | ||||||||
Cash flows from Transactions: | 30280 | ||||||||
Answer is: | |||||||||
C. The balance sheet prepared on last day shows that the number of shares outstanding is 3030. | |||||||||
D. When 50 shares of treasury stock were reissued, the treasury stock account decreased by $ 1300. | |||||||||
E. Change in cash from equity transactions during the year amounts to $ 30280. | |||||||||