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PIC-in excess of par and Retained Earnings Question Details Common Stock($10 par

ID: 2434980 • Letter: P

Question

PIC-in excess of par and Retained Earnings
Question Details
Common Stock($10 par value, authorized 1,000,000 shares, issued and outstanding 900,000 shares)............................................................9,000,000
PIC-in excess of par.......................................................2,700,000
Retained Earnings..........................................................1,300,000
Total Stockholders Equity.................................................13,000,000


Purchased and retired 100,000 shares of its stock for $1,800,000. Immediately after retirement of the 100,000 shares, the balance in the PIC-in excess of par and Retained Earnings accounts should be?

Explanation / Answer

The new balance will be Common Stock($10 par value, authorized 1,000,000 shares, issued and outstanding 800,000 shares)............................................................8,000,000 PIC-in excess of par.......................................................1,900,000 Retained Earnings..........................................................1,300,000 Total Stockholders Equity.................................................11,200,000