On January 1, Year 1, Black Dog Corp. began operations and issued 30,000 shares of $ 5

Question:

On January 1, Year 1, Black Dog Corp. began operations and issued 30,000 shares of $ 5 par for $ 9/ share. On June 30, the company bought back 10,000 shares for $ 8/ share. Then, on September 15, the company resold 5,000 shares for $ 12/ share. What amount of total additional paid- in capital should Black Dog report on its December 31, Year 1 if Black Dog uses the cost method to account for its treasury stock?
a. $ 20,000
b. $ 120,000
c. $ 140,000
d. $ 165,000 Common Stock
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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...