treasury Stock-repurchased and resold
I need help with this puzzle
Company P's Equity account for the year 19xx are as follows
Common Stock ($5-25,000 issued & Outstanding)... 125,000
Premium on common Stock.. . 625,000
Retained Earnings.. . 1,00,000
Total $1,750,000
During the year Company P Had following transactions
1. Repurchased 5,000 shares @ $15.00 per share (5,000*15=$75,000)
2. Resold 5,000 shares @ $20.00 per share (5,00*20= $100,000)
After these treasury stock transactions, Company P' Adjusted total equity
should be:
My answer is 1,775,000
Total Repurchased Resold =Adjusted Total Equity
1,750,000 + 75,000 - 100,000 = $1,775,000
! 1750,000
2. 1850,000
3. 1925,000
1-3 are possible answer too
