Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of $1 par value common stock. During Year 1, the company had the following capital transactions: January 5 issued 1,700,000 shares at $16 per share. July 27 purchased 200,000 shares at $14 per share. November 25 sold 120,000 shares of treasury stock at $18 per share. Kettle used the cost method to record the purchase of the treasury shares. What would be the balance in the APIC - Treasury Stock account at December 31, Year 1? Correct answer is $480,000 Please, explain every step.
Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of $1 par value common stock. During Year 1, the company had the following capital transactions: January 5 issued 1,700,000 shares at $16 per share. July 27 purchased 200,000 shares at $14 per share. November 25 sold 120,000 shares of treasury stock at $18 per share. Kettle used the cost method to record the purchase of the treasury shares. What would be the balance in the APIC - Treasury Stock account at December 31, Year 1? Correct answer is $480,000 Please, explain every step.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of $1 par value common stock. During Year 1, the company had the following capital transactions:
January 5 issued 1,700,000 shares at $16 per share.
July 27 purchased 200,000 shares at $14 per share.
November 25 sold 120,000 shares of
Kettle used the cost method to record the purchase of the treasury shares. What would be the balance in the APIC - Treasury Stock account at December 31, Year 1?
Correct answer is $480,000
Please, explain every step.
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