Ask Question
21 March, 00:16

Worthy Ships initially issued 400,000 shares of $1 par stock for $2,000,000 in 2021. In 2023, the company repurchased 40,000 shares for $400,000. In 2024. 20,000 of the repurchased shares were resold for $320,000. In its balance sheet dated December 31, 2024, C. Worthy's treasury stock account shows a balance of Multiple Choice $200,000 $80,000 $400,000

+2
Answers (1)
  1. 21 March, 00:22
    0
    Worthy Ships:

    Treasury Stock account balance would be $80,000.

    Explanation:

    Treasury Stock account is a contra account to the Common Stock account. Using the cost method, the account will have a debit entry and balance of $400,000 in 2023. In 2024, with the resale of shares, the account will have a credit entry of $320,000. This would bring the balance to $80,000 at the end of 2024.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Worthy Ships initially issued 400,000 shares of $1 par stock for $2,000,000 in 2021. In 2023, the company repurchased 40,000 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