On March 31,2018,Water Front,Inc Assume That Water Front Sells 1500 Shares of Treasury Stock

question 268

Multiple Choice

On March 31,2018,Water Front,Inc.shows the following data on its balance sheet: $$\begin{array} { | l | r | } \hline \text { Stockholders' Equity } & \\\hline \text { Common Stock, } \$ 1 \text { Par, 1,180,000 shares authorized } & \\\hline 240,000 \text { shares issued, 230,000 shares outstanding } & \$ 240,000 \\\hline \text { Paid-In Capital in Excess of Par-Common } & 2,560,000 \\\hline \text { Retained Earnings } & 4,790,000 \\\hline \text { Treasury stock, 15,000 shares at } \$ 40 & \$ 600,000 \\\hline \text { Total Stockholder's Equity } & \$ 6,990,000 \\\hline\end{array}$$ Assume that Water Front sells 1500 shares of treasury stock at $33 per share.What is total stockholders' equity after this transaction?

• A) $6,940,500
• B) $7,039,500
• C) $6,979,500
• D) $7,000,500

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Definitions:

Additional Investment

Funds invested into a business by its owners or shareholders over and above the initial investment.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the financial performance of the business.

Statement Of Owner's Equity

A financial document showing changes in the equity of a company over a certain period due to various business activities, such as earnings and withdrawals.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and equity.