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Coronado Industries was organized on January 2, 2021, with 507000 authorized shares of $10 par value...

Coronado Industries was organized on January 2, 2021, with 507000 authorized shares of $10 par value common stock. During 2021, Coronado had the following capital transactions: January 5—issued 380250 shares at $16 per share. July 27—purchased 25350 shares at $13 per share. November 25—sold 15210 shares of treasury stock at $15 per share. Coronado used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2021?

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Answer #2

Answer - The balance in the Paid-in Capital from Treasury Stock account at December 31, 2021 is $30,420

Explanation:

The computation of the balance in the treasury stock account is shown below:

= Number of shares sold * (Selling price of the share - purchase price of the share)

= 15210 shares × ($15 per share - $13 per share)
= 15210 shares × $2 per share
= $30,420

The other things which are mentioned like issued shares, authorized shares are irrelevant because we have to calculate for the treasury stock, not for the common stock.

answered by: anonymous
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