The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows: Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) Common Stock ($5 par, 500,000 shares authorized) Additional Paid in Capital - Preferred Additional Paid in Capital - Common Retained Earnings $28,000 600,000 164,640 1,776,000 685,600 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity: Jan. 2 Purchased 2,000 shares of its own common stock to add to the Treasury at a cost of $43,000. Feb. 21 Issued 8,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $169,600 and the stock was trading at $20.25 per share. Mar. 21 Sold 800 shares of treasury stock - common for $24 per share. Nov. 14 Issued 400 shares of preferred stock for $28,800. Dec. 31 Determined that net income for the year was $180,800. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears. How many shares of common stock are outstanding as of December 31, 2022? Select one: O O O O a. 405,200 b. 128,000 c. 406,400 d. 126,800 e. 374,400
The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows: Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) Common Stock ($5 par, 500,000 shares authorized) Additional Paid in Capital - Preferred Additional Paid in Capital - Common Retained Earnings $28,000 600,000 164,640 1,776,000 685,600 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity: Jan. 2 Purchased 2,000 shares of its own common stock to add to the Treasury at a cost of $43,000. Feb. 21 Issued 8,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $169,600 and the stock was trading at $20.25 per share. Mar. 21 Sold 800 shares of treasury stock - common for $24 per share. Nov. 14 Issued 400 shares of preferred stock for $28,800. Dec. 31 Determined that net income for the year was $180,800. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears. How many shares of common stock are outstanding as of December 31, 2022? Select one: O O O O a. 405,200 b. 128,000 c. 406,400 d. 126,800 e. 374,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows:
Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized)
Common Stock ($5 par, 500,000 shares authorized)
Additional Paid in Capital - Preferred
Additional Paid in Capital - Common
Retained Earnings
$28,000
600,000
164,640
1,776,000
685,600
During 2022, the corporation had the following transactions and events relating to its Stockholders Equity:
Jan. 2 Purchased 2,000 shares of its own common stock to add to the Treasury at a cost of $43,000.
Feb. 21 Issued 8,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $169,600 and the stock was trading at
$20.25 per share.
Mar. 21 Sold 800 shares of treasury stock - common for $24 per share.
Nov. 14 Issued 400 shares of preferred stock for $28,800.
Dec. 31 Determined that net income for the year was $180,800. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend
to common stockholders of record as of December 20. There are no dividends in arrears.
How many shares of common stock are outstanding as of December 31, 2022?
Select one:
O
O O O
a. 405,200
b. 128,000
c. 406,400
d. 126,800
e. 374,400
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
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