Victoria’s Secret was organized on January 1, with an authorization of 2,400,000 shares of $10 par value Common Stock. During the year, Victoria’s Secret had the following common stock transactions:January 4Issued 120,000 shares @ $12 per shareApril 8Issued 240,000 shares @ $14 per shareJune 9Issued 72,000 shares @ $20 per shareJuly 29Purchased 48,000 shares (treasury) @ $20 per shareDecember 31Sold 48,000 held in treasury @ $24 per share The Company had no other transactions affecting additional paid-in capital. At December 31, what is the Total amount of Additional Paid-In Capital (for Common Stock & Treasury Stock)?Select one:a. $2,016,000b. $2,112,000c. $6,432,000d. $1,920,000e. $4,320,000

The issue amount in addition to par value will be considered as "Additional paid in capital- Common…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Victoria’s Secret was organized on January 1, with an authorization of 2,400,000 shares of $10 par value Common Stock. During the year, Victoria’s Secret had the following common stock transactions:

January 4	Issued 120,000 shares @ $12 per share
April 8	Issued 240,000 shares @ $14 per share
June 9	Issued 72,000 shares @ $20 per share
July 29	Purchased 48,000 shares (treasury) @ $20 per share
December 31	Sold 48,000 held in treasury @ $24 per share

The Company had no other transactions affecting additional paid-in capital. At December 31, what is the Total amount of Additional Paid-In Capital (for Common Stock & Treasury Stock)?

Select one:

a. $2,016,000

b. $2,112,000

c. $6,432,000

d. $1,920,000

e. $4,320,000

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