Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of $10
Question:
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of $10 par value common stock at $15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of $750,000 and paid cash dividends of $380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at $12 per share. On December 28, 2019, 8,000 treasury shares were sold at $8 per share. Kent used the cost method of accounting for treasury shares. What is Kent’s total shareholders’ equity as of December 31, 2019?
a. $3,290,000
b. $3,306,000
c. $3,338,000
d. $3,370,000
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
