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 ($10 par value); authorized 1,000,000 shares, issuedand outstanding 900,000 sharesAdditional paid-in capitalRetained earningsTotal stockholders' equity$ 9,000,0002,700,0001,300,000$13,000,000On 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 afterthe shares were retired?AmountsAdditional paid-in capitalRetained earnings13

Retirement of shares refers to the permanent removal of outstanding shares from the market by a…

Answered: 13 Required: What is the balance in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k
a. Where should a declared but unpaid cash dividend be reported on the balance sheet?b. Where should a declared but unissued stock dividend be reported on the balance sheet?
Question 1 Which of the following would NOT be included as equity in a corporate balance sheet? Retained earnings Paid in capital Cash Ordinary shares
Which of the following would NOT be reported for capital stock in the contributed capital section of a classified balance sheet? Group of answer choices A.Dividends per share B.Shares issued C,Shares outstanding D.Shares authorized
.What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Group of answer choices a. Organization Expense b. Additional Paid-in Capital c. Organization Costs d. Common stock
3. Which of the following are Assets, Liabilities, Equity? Accounts Payable Common Stock Bonds Payable Furniture and Fixtures Inventory Interest Payable Dividend's Additional paid-in-capital Patents and copyrights Short-term investments
b. Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock
hich of the following is not true about the stockholders' equity section of a balance sheet? a. Stock characteristics are indicated. b. Preferred stock subscriptions receivable, common stock subscriptions receivable, and treasury stock are subtracted from the total of paid - in capital and retained earnings. c. Contra equity accounts are shown at the beginning of the stockholders' equity section of a balance sheet. d. Retained earnings is listed after all paid - in capital.
Which of the following is not a method that may be used to account for treasury shares?a. Cost methodb. Par value methodc. Retained earnings methodd. Constructive retirement methodC
which of the following balances can the paid in capital treasury stock account not have zero balance debit balance credit balance both a and b
Treasury Stock Transactions Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share. a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank. Feb. 11 Treasury Stock Cash Apr. 30 Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Aug. 22 Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock
Required:A. Journalize the foregoing transactions. B. Prepare the share capital section of the stockholders’ equity as of December 31, 2018.

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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