The stockholders' equity section of Peter Corporation's balance sheet at December 31, 2017, follows: Common stock ($10
Question:
The stockholders' equity section of Peter Corporation's balance sheet at December 31, 2017, 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, 2018, 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?
Balance SheetBalance 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...
Step by Step Answer:
Because the shares are retired rather than held in treasury they are removed from the books of Pet...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
