Question

SEM * Liberation Sa B T U " 12 VAA " "A" AR $ V bộ + + = =# 8 • % ; 3 THẾ HỆ 8 UD 2 i n . TER KIKI on January 1.2020. ABC Corp. had issued 100,000 shares of $5 par value common stock for cash at $10 per share. It authorized 500 earnings is $350,000 shares a. Prepare stockholders' equity section Stockholders' equity Pandan capital Common stock, SS parale, 500.000 shares Authorized 100,000 shares ived & outstanding Paid in capital in excess of par value Total din capital 1 Retained in 2 Total Stockholders' equity 4 On December 31, 2020, ABC acquires 10,000 shares of its stock at 58 per share. 6 . Update and prepare stockholders' equity section of ABC Corp. at December 31, 2020 Authorized 8 Stockholders' equity 19 Pand-in capital Com ock, par value 500,000 100.000 hores i diotanding Paid in capital in eccess of par vale Total paid in capital 24 Retained Farming 25 Total paid in capital a n d eng 25 Less Treaty ock 27 Total Stockholders equity Sheet1 - Type here to search a m e

Answer 1

a. Prepare stockholders equity section:
Shareholder equity
Paid - in Capital
Common stock, $5 par value, 500,000 shares Authorized
100,000 shares issued & outstanding                                [100,000 shares x $5]	$500,000
Paid-in capital in excess of par value - Common stock       [100,000 shares x ($10 - $5)]	$500,000
Total Paid-In Capital                                                      [$500,000 + $500,000]	$1,000,000
Retained Earnings	$350,000
Total Stockholders' Equity                                                      [$1,000,000 + $350,000]	$1,350,000
b. Update and prepare stockholders equity section of ABC Corp. at December 31, 2020
Shareholder equity
Paid - in Capital
Common stock, $1 par value, 500,000 shares Authorized
100,000 shares issued & outstanding	$500,000
Paid-in capital in excess of par value - Common stock	$500,000
Total Paid-In Capital	$1,000,000
Retained Earnings	$350,000
Total Paid-In Capital and Retained Earnings	$1,350,000
Less: Treasury stock                [$10,000 shares x $8]	$80,000
Total Stockholders' Equity        [$1,350,000 - $80,000]	$1,270,000