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The market price of a share of common stock at the time of issuance was $18.00, while the market price of a preferred share of stock at the time of issuance was $27.50. The company paid $12.50 per share for its treasury stock. Required: Determine the missing amount in the stockholders' equity section of the balance sheet set forth below. (Input all amounts as positive values.) Stockholders' Equity Preferred Stock, $2 par value, authorized 1,000,000 shares; issued 600,000 shares Additional Paid-In Capital Common Stock, $3 par value, authorized 40,000,000 shares; issued 17,500,000 shares Additional Paid-In Capital Retained Earning 60,000X X X X 207,183,000 207,243,000

The market price of a share of common stock at the time of issuance was $18.00, while the market price of a preferred share of stock at the time of issuance was $27.50. The company paid $12.50 per share for its treasury stock. Required: Determine the missing amount in the stockholders' equity section of the balance sheet set forth below. (Input all amounts as positive values.) Stockholders' Equity Preferred Stock, $2 par value, authorized 1,000,000 shares; issued 600,000 shares Additional Paid-In Capital Common Stock, $3 par value, authorized 40,000,000 shares; issued 17,500,000 shares Additional Paid-In Capital Retained Earning 60,000X X X X 207,183,000 207,243,000

FINANCIAL ACCOUNTING
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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The market price of a share of common stock at the time of issuance was $18.00, while the market price of a preferred share of stock at the time of issuance was $27.50. The company paid $12.50 per share for its treasury stock. Required: Determine the missing amount in the stockholders' equity section of the balance sheet set forth below. (Input all amounts as positive values.) Stockholders' Equity Preferred Stock, $2 par value, authorized 1,000,000 shares; issued 600,000 shares Additional Paid-In Capital Common Stock, $3 par value, authorized 40,000,000 shares; issued 17,500,000 shares Additional Paid-In Capital Retained Earning 207,183,000 207,243,000 Less: Treasury Stock, at Cost (11,000 shares) Total Stockholders' Equity *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 60,000X X X X $ 207,243,000 X
Transcribed Image Text:The market price of a share of common stock at the time of issuance was $18.00, while the market price of a preferred share of stock at the time of issuance was $27.50. The company paid $12.50 per share for its treasury stock. Required: Determine the missing amount in the stockholders' equity section of the balance sheet set forth below. (Input all amounts as positive values.) Stockholders' Equity Preferred Stock, $2 par value, authorized 1,000,000 shares; issued 600,000 shares Additional Paid-In Capital Common Stock, $3 par value, authorized 40,000,000 shares; issued 17,500,000 shares Additional Paid-In Capital Retained Earning 207,183,000 207,243,000 Less: Treasury Stock, at Cost (11,000 shares) Total Stockholders' Equity *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 60,000X X X X $ 207,243,000 X
Anthem Inc. Issues 200,000 shares of stock with a par value of $0.21 for $170 per share. Three years later, it repurchases these shares for $100 per share. Anthem records the repurchase in which of the following ways? Debit Common Stock for $42,000, debit Additional Paid-in Capital for $33,958,000 and credit Cash for $34.00 million. Debit Treasury Stock for $20.00 million and credit Cash for $20.00 million. Debit Stockholders' Equity for $34.00 million, credit Additional Paid-in Capital for $20.00 million and credit Cash for $20.00 million. Debit Common Stock for $42,000, debit Additional Paid-in Capital for $19,958,000 and credit Cash for $20.00 million.
Transcribed Image Text:Anthem Inc. Issues 200,000 shares of stock with a par value of $0.21 for $170 per share. Three years later, it repurchases these shares for $100 per share. Anthem records the repurchase in which of the following ways? Debit Common Stock for $42,000, debit Additional Paid-in Capital for $33,958,000 and credit Cash for $34.00 million. Debit Treasury Stock for $20.00 million and credit Cash for $20.00 million. Debit Stockholders' Equity for $34.00 million, credit Additional Paid-in Capital for $20.00 million and credit Cash for $20.00 million. Debit Common Stock for $42,000, debit Additional Paid-in Capital for $19,958,000 and credit Cash for $20.00 million.
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