Question

# The stockholders' equity account balances of ABC Company at January 1, 2020 are given below: January...

```The stockholders' equity account balances of ABC Company at
January 1, 2020 are given below:

January 1, 2020
Common stock .........................       658,000
Paid-in capital – common stock .......       423,000
Treasury stock .......................       256,000
Paid-in capital – treasury stock .....        18,000
Retained earnings ....................       425,000

The common stock account at January 1 consisted of 31,000
shares that were outstanding at a \$14 par value per share.

The treasury stock account at January 1 consisted of 16,000
shares of common stock that had been re-acquired at a \$16
cost per share.

During January, ABC entered into the following transactions:

January 11:   Re-issued 4,300 of the treasury shares for
\$25 per share

January 19:   Issued 7,000 shares of previously un-issued
common stock for \$25 per share

January 28:   Declared and paid a \$2.30 dividend per share
on the outstanding shares of common stock

ABC Company reported a net income of \$120,000 for January.

Calculate the amount of ABC Company's total stockholders'
equity at January 31, 2020.```

 Computation of gain on sale of treasury stock: Reissue of treasury stock on Jan 11: Reissue price (4300*25) 1,07,500 Less: Cost (4300*16) 68,800 Gain credited to Paid in capital 38,700 Stockholder's equity: Common Stock (47000+7000)*14 7,56,000 Paid in capital -Common Stock (423000+7000*11) 5,00,000 Treasury Stock (16000-4300)shares*16 1,87,200 Paid in Capital_treasury (18000+38,700) 56,700 Retained earnings 4,47,710 (425,000+120,000-42300*2.30) Total Stockholder's equity 1947610

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Question text Estimating Share Value Using the DCF Model Following are the income statement and balance...
asked 2 minutes ago
• A crop survey drone has a speed in still air of 30kmh?1. It is pointed in...
asked 8 minutes ago
• Archaic Homo sapiens exhibit characteristics similar to __________ and anatomically modern Homo sapiens. Group of answer...
asked 8 minutes ago
• (30)Consider the market for chicken, if consumers use chicken and beef as substitutes, an increase in...
asked 8 minutes ago
• Find the probability of throwing a sum of 10 at least 5 times in 10 throws...
asked 16 minutes ago
• A marketing research company hired by Pepsi is interested in estimating the proportion of cola customers...
asked 27 minutes ago
• a.) How many calcium atoms are in 0.154 g of calcium sulfate? b.) Empirical formula for...
asked 39 minutes ago
• What color will the solution be if we add H2SO4 to the K2CrO4 solution? H2SO4 (aq)...
asked 44 minutes ago
• Company: BubblePop Project: APPKiller You’re the CFO of the tech company, BubblePop. Your CMO (Chief Marketing...
asked 45 minutes ago
• A vertical vessel has an internal radius of 48”. The material's allowable stress is 12,000 psi....
asked 45 minutes ago
• You wish to test the following claim (HaHa) at a significance level of α=0.001 Ho:μ1=μ2 Ha:μ1≠μ2...
asked 49 minutes ago
• Sec 6.2 1.Write an augmented matrix for the following system of equations. 9x-8y+6z=-1 7x-5y+2z=9 6y-8z=-9 The...
asked 52 minutes ago