The Stockholders\' Equity section of Bingham Moving and Storage\'s balance sheet on January 1, 2012, appeared as follows:
On March 1, 2012, Bingham reacquired 2,600 shares of common stock at $8 per share. Answer the following questions:
A) What amount would be reported on the March 31, 2012, balance sheet for treasury stock?
$
B) What is the number of outstanding shares at March 31, 2012?
shares
C) How much is total stockholders\' equity to be reported on the March 31, 2012 balance sheet?
$
Solution
Please find the answer as follows:
Part A:
Treasury Stock Value = 2600 (Number of Shares Reacquired)*8 = 20800
Part B:
Number of Outstanding Shares = 30000 (Total Number of Shares) - 2600 (Number of Shares Reacquired) = 27400
Part C:
Total stockholders\' equity = 570000 - 20800 = 549200
.
The Stockholders-' Equity section of Bingham Moving and Storage-'s bal.docx
1. The Stockholders' Equity section of Bingham Moving and Storage's balance sheet on January 1,
2012, appeared as follows:
On March 1, 2012, Bingham reacquired 2,600 shares of common stock at $8 per share. Answer
the following questions:
A) What amount would be reported on the March 31, 2012, balance sheet for treasury stock?
$
B) What is the number of outstanding shares at March 31, 2012?
shares
C) How much is total stockholders' equity to be reported on the March 31, 2012 balance sheet?
$
Common stock, $5 par, 30,000 shares issued and outstanding $150,000
Additional paid-in capital--common 120,000
Retained earnings 300,000
Total stockholders' equity $570,000
Solution
Please find the answer as follows:
Part A:
Treasury Stock Value = 2600 (Number of Shares Reacquired)*8 = 20800
Part B:
Number of Outstanding Shares = 30000 (Total Number of Shares) - 2600 (Number of Shares
Reacquired) = 27400
Part C:
