Answered

Join the IDNLearn.com community and start finding the answers you need today. Join our interactive Q&A platform to receive prompt and accurate responses from experienced professionals in various fields.

Bella Donna Company has 100,000 shares of $2 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $8 per share. On February 3, 2018, Bella Donna repurchased 3,590 shares at $6 per share for the purposes of retiring them. What will be the balance in Paid in capital in excess of par after February 3rd transaction?

Sagot :

Ayokenny2001idn

Answer:

$585,640

Explanation:

Paid in capital in excess of on January 1 , 2018

= 100,000 × ($8 - $2)

= $100,000 × $6

= $600,000

Paid in capital in excess of par on repurchased share for retiring

= 3,590 × ($6 - $2)

= 3,590 × $4

= $14,360

Therefore,

Balance in paid in capital in excess of par after February 3rd transaction

= $600,000 - $14,360

= $585,640

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.