kimberlydo
Feb 15, 2012, 09:23 PM
Watt Co.'s stockholders' equity at January 1, 2007 is as follows:
Common stock, $10 par value; authorized 300,000 shares; Outstanding 225,000 shares $ 2,250,000
Paid-in capital in excess of par 900,000
Retained earnings 2,190,000
Total $ 5,340,000
During 2007, Watt had the following stock transactions:
Acquired 6,000 shares of its stock for $270,000.
Sold 3,600 treasury shares at $50 a share.
Sold the remaining treasury shares at $41 per share.
No other stock transactions occurred during 2007. Assuming Watt uses the cost method to record treasury stock transactions, the total amount of all additional paid-in capital accounts at December 31, 2007 is
A. $ 891,600
B. $ 870,000
C. $ 908,400
D. $ 927,600
Common stock, $10 par value; authorized 300,000 shares; Outstanding 225,000 shares $ 2,250,000
Paid-in capital in excess of par 900,000
Retained earnings 2,190,000
Total $ 5,340,000
During 2007, Watt had the following stock transactions:
Acquired 6,000 shares of its stock for $270,000.
Sold 3,600 treasury shares at $50 a share.
Sold the remaining treasury shares at $41 per share.
No other stock transactions occurred during 2007. Assuming Watt uses the cost method to record treasury stock transactions, the total amount of all additional paid-in capital accounts at December 31, 2007 is
A. $ 891,600
B. $ 870,000
C. $ 908,400
D. $ 927,600