On January 1, 2020, Bogie Corporation Had 40,000 Common Shares

question 15

Multiple Choice

On January 1, 2020, Bogie Corporation had 40,000 common shares outstanding issued at $16 each during 2020. On June 1, 2020, Bogie Corporation issued 5,000 shares of its common shares at $15 per share. On September 30, 2020, Bogie Corporation repurchased 3,000 shares of its common shares for $17 per share. On November 30, 2020, Bogie Corporation reissued 2,000 shares of repurchased shares at $18 per share. The balance in Share Capital on December 31, 2020, as shown on the statement of shareholders' equity, is:

• A) $703,333
• B) $700,000
• C) $640,000
• D) $756,000

---

Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend payment preferences.

Par Value

The stated face value of a bond or the nominal value of a stock, unrelated to its market price.

Paid-in Capital

The sum of funds a business has obtained from its stockholders by selling them stock shares.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, which does not necessarily reflect its market value.