For the Current Year Ended, ABC Had the Following Transactions

question 204

Short Answer

For the current year ended, ABC had the following transactions:
- Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.​
Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.​
a.Treasury stock
b.Retained earnings
c.Preferred stock
d.Excess of issue price over par (preferred)e.Common stock
f.Total paid-in capital
g.Excess of issue price over par (common)h.Total stockholders' equity
-$15,000

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Definitions:

Jointly Liable

A legal term indicating that two or more parties are fully responsible for fulfilling an obligation or paying off a debt.

Bank Loans

Financial borrowings from a bank that need to be repaid with interest.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Legal Status

The standing of an entity or individual under the law, determining their rights, responsibilities, and liabilities.