Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

The financial statements for Highland Corporation included the following selected information:

Common stock $465,000
Retained earnings $830,000
Net income $1,120,000
Shares issued 93,000
Shares outstanding 65,000
Dividends declared and paid $720,000

The common stock was sold at a price of $33 per share.

Required:
a. What is the amount of additional paid-in capital?
b. What was the amount of retained earnings at the beginning of the year?
c. How many shares are in treasury stock?

Sagot :

Parrain

Answer:

a. Additional paid-in capital:

= Amount received from shares issued - Common stock

= (33 per share * 93,000) - 465,000

= $2,604,000

b. Beginning retained earnings:

Ending retained earnings = Beginning retained earnings + Net income - Dividend

830,000 = Beginning retained earnings + 1,120,000 - 720,000

Beginning retained earnings = 830,000 - 1,120,000 + 720,000

= $430,000

c. Treasury stock:

= Shares issued - Shares outstanding

= 93,000 - 65,000

= 28,000 shares

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.