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ABC Corporation was organized on January 3, 2007, with authorized capital of 100,000 shares of P10 par common stock.  During 2007, ABC had the following transactions affecting stockholders’ equity: January 7--Issued 40,000 shares at P12 per share December 2--Purchased 6,000 shares of treasury stock at P13 per share The cost method was used to record the treasury stock transaction.  ABC’s net income for 2007 is P300,000.  What is the amount of stockholders’ equity at December 31, 2007?     a.    P640,000     b.    P702,000     c.    P708,000     d.    P720,000

ABC Corporation was organized on January 3, 2007, with authorized capital of 100,000 shares of P10 par common stock.  During 2007, ABC had the following transactions affecting stockholders’ equity: January 7--Issued 40,000 shares at P12 per share December 2--Purchased 6,000 shares of treasury stock at P13 per share The cost method was used to record the treasury stock transaction.  ABC’s net income for 2007 is P300,000.  What is the amount of stockholders’ equity at December 31, 2007?     a.    P640,000     b.    P702,000     c.    P708,000     d.    P720,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Corporation was organized on January 3, 2007, with authorized capital of 100,000 shares of P10 par common stock.  During 2007, ABC had the following transactions affecting stockholders’ equity:
January 7--Issued 40,000 shares at P12 per share
December 2--Purchased 6,000 shares of treasury stock at P13 per share
The cost method was used to record the treasury stock transaction.  ABC’s net income for 2007 is P300,000.  What is the amount of stockholders’ equity at December 31, 2007?
    a.    P640,000
    b.    P702,000
    c.    P708,000
    d.    P720,000

 

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