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13 Required: What is the balance in the Additional paid-in capital and Retained earnings accounts immediately after the shares were retired? Amounts Additional paid-in capital Retained earnings

13 Required: What is the balance in the Additional paid-in capital and Retained earnings accounts immediately after the shares were retired? Amounts Additional paid-in capital Retained earnings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 16-3 Retiring common stock (LO 16-1) The stockholders' equity section of Peter Corporation's balance sheet at December 31, 20X1, follows: Common stock ($10 par value); authorized 1,000,000 shares, issued and outstanding 900,000 shares Additional paid-in capital Retained earnings Total stockholders' equity $ 9,000,000 2,700,000 1,300,000 $13,000,000 On January 2, 20×2, Peter purchased and retired 100,000 shares of its stock for $1,800,000. Required: What is the balance in the Additional paid-in capital and Retained earnings accounts immediately after the shares were retired? Amounts Additional paid-in capital Retained earnings 13
Transcribed Image Text:Exercise 16-3 Retiring common stock (LO 16-1) The stockholders' equity section of Peter Corporation's balance sheet at December 31, 20X1, follows: Common stock ($10 par value); authorized 1,000,000 shares, issued and outstanding 900,000 shares Additional paid-in capital Retained earnings Total stockholders' equity $ 9,000,000 2,700,000 1,300,000 $13,000,000 On January 2, 20×2, Peter purchased and retired 100,000 shares of its stock for $1,800,000. Required: What is the balance in the Additional paid-in capital and Retained earnings accounts immediately after the shares were retired? Amounts Additional paid-in capital Retained earnings 13
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