Ask Question
28 April, 14:16

C. Worthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2018. In 2020, the company repurchased 30,000 shares for $300,000. In 2021, 15,000 of the repurchased shares were resold for $240,000. In its balance sheet dated December 31, 2021, C. Worthy's treasury stock account shows a balance of: Multiple Choice $ 60,000 $300,000 $ 0 $150,000

+3
Answers (1)
  1. 28 April, 14:37
    0
    Balance of treasury stock account = 15000 shares

    so

    correct option is $150,000

    Explanation:

    given data

    initially issued = 300,000

    shares = $1 par stock

    solution

    we know here that Shares repurchased in 2020 is

    Shares repurchased in 2020 = 30000 shares for $300,000

    and half of the treasury so

    resale of shares in 2021 is = 15000 shares

    so Balance of treasury stock account dated December 31, 2021 is

    Balance of treasury stock account = 30000 - 15000

    Balance of treasury stock account = 15000 shares

    so

    correct option is $150,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “C. Worthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2018. In 2020, the company repurchased 30,000 shares for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers