Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

For the current year ended, ABC had the following transactions: Issued 10,000 sh

ID: 2436534 • Letter: F

Question

For the current year ended, ABC had the following transactions: Issued 10,000 shares of $2 par common stock for $12 per share. Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share. Purchased 1,000 shares of previously issued common stock for $15 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. Match the following amounts to the appropriate term. Clear All Total stockholders' equity Total paid-in capital Retained earnings Treasury stock $330,000 $550,000 $15,000 $235,000

Explanation / Answer

Total paid-in capital 330000 =(10000*12)+(3000*70) Retained earnings 235000 =75000+200000-40000 Treasury stock 15000 =1000*15 Total stockholders' equity 550000 =330000+235000-15000