An analysis of stockholders' equity of Hang Corporation as of January 1, 2020, is as follows: Common stock, par value P20; authorized 100,000 shares. issued and outstanding 90,000 shares Paid-in capital in excess of par Retained earnings Total P1,800,000 900,000. 760,000. P3,460,000 Hang uses the cost method of accounting for treasury stock and during 2020 entered the following transactions: Acquired 2,500 shares of its stock for P75,000. Sold 2,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share. Assuming no other equity transactions occurred during 2020, what should Hang report on December 31, 2020, as total additional paid-in capital?
An analysis of stockholders' equity of Hang Corporation as of January 1, 2020, is as follows: Common stock, par value P20; authorized 100,000 shares. issued and outstanding 90,000 shares Paid-in capital in excess of par Retained earnings Total P1,800,000 900,000. 760,000. P3,460,000 Hang uses the cost method of accounting for treasury stock and during 2020 entered the following transactions: Acquired 2,500 shares of its stock for P75,000. Sold 2,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share. Assuming no other equity transactions occurred during 2020, what should Hang report on December 31, 2020, as total additional paid-in capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Using the given data , (there was a typo error, the date December 31, 2014 should be December 31, 2018). The question is, at December 31, 2019, how many shares were authorized?
at December 31, 2019, how many shares are issued?
At December 31, 2019, how many shares are outstanding?
Transcribed Image Text:An analysis of stockholders' equity of Hang Corporation as of January 1, 2020, is as follows:
Common stock, par value P20; authorized 100,000 shares.
issued and outstanding 90,000 shares
Paid-in capital in excess of par
Retained earnings
P1,800,000
900,000.
760,000.
Total
P3,460,000
Hang uses the cost method of accounting for treasury stock and during 2020 entered the
following transactions:
Acquired 2,500 shares of its stock for P75,000.
Sold 2,000 treasury shares at P35 per share.
Sold the remaining treasury shares at P20 per share.
Assuming no other equity transactions occurred during 2020, what should Hang report on
December 31, 2020, as total additional paid-in capital?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education