The stockholders equity section of Peter Corporations balance sheet at December 31, 20X1, follows: Common stock ($10
Question:
The stockholders’ equity section of Peter Corporation’s balance sheet at December 31, 20X1, follows:
Common stock ($10 par value); authorized .......................... 1,000,000
shares, issued and outstanding 900,000 shares ............... $ 9,000,000
Additional paid-in capital ........................................................ 2,700,000
Retained earnings .................................................................... 1,300,000
Total stockholders’ equity .................................................. $ 13,000,000
On January 2, 20X2, Peter purchased and retired 100,000 shares of its stock for $1,800,000.
Required:
What is the balance in the Additional paid-in capital and Retained earnings accounts immediately after the shares were retired?
Step by Step Answer:
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer