Respuesta :
Answer:
$61 million
Explanation:
Additional paid-in capital credited on Feb 4 = Number of shares sold × (Share selling price - Share par value) = 4 million × ($15 - $1) = $56 million
Worth of shares debited on October 12 = Number of shares retired × (Share original selling price - Share par value) = 1 million × ($15 - $1) = $14 million
Additional paid-in capital credited on December 30 = Number of shares sold × (Share selling price - Share par value) = 1 million × ($20 - $1) = $19 million
Net additional paid-in capital = $56 million - $14 million + $19 million = $61 million
Answer:
$58,000,000
Explanation:
the journal entries should be:
February 4, 4 million shares sold:
Dr Cash 60,000,000
Cr Common stock 4,000,000
Cr Additional paid in capital 56,000,000
October 12, 1 million shares repurchased:
Dr Treasury stock 18,000,000
Cr Cash 18,000,000
Treasury stock is a contra equity account that lowers shareholders' equity, and is reported at the end of the balance sheet. When you repurchase stock, you must record the full value of the transaction under treasury stock since it doesn't result in gains or losses.
December 30, treasury stocks are sold again:
Dr Cash 20,000,000
Cr Treasury stock 18,000,000
Cr Additional paid in capital 2,000,000
The credit balance of additional paid in capital account = $56,000,000 + $2,000,000 = $58,000,000
