The Stockholders\' Equity section of Bingham Moving and Storage\'s balance sheet

ID: 2376459 • Letter: T

Question

The Stockholders' Equity section of Bingham Moving and Storage's balance sheet on January 1, 2013, appeared as follows:

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

On March 1, 2012, Bingham reacquired 3,000 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?

C) How much is total stockholders' equity to be reported on the March 31, 2012 balance sheet?

Hi,

Please find the answer as follows:

Part A:

Treasury Stock Value = 3000 (Number of Shares Reacquired)*8 =24000

Part B:

Number of Outstanding Shares = 30000 (Total Number of Shares) - 3000 (Number of Shares Reacquired) = 27000

Part C:

Total stockholders' equity = 570000 - 24000 = 546000

Thanks.

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