Given below is some summarized information taken from the adjusted trial balance
ID: 2435393 • Letter: G
Question
Given below is some summarized information taken from the adjusted trial balance of New Company at December 31, Year 2, the end of its second year of operations.
Debit
Credit
Cash
15,000
A/R
6,000
Equipment (net)
66,000
A/P
31,000
Dividends Payable
3,000
Common Stock ($3 par, 1,000 shares issued)
3,000
APIC
27,000
Treasury Stock (200 shares)
8,000
Retained Earnings
14,000
Revenues
98,000
Expenses
78,000
Dividends Declared
3,000
.
Total
176,000
176,000
The only treasury stock transaction was the purchase of 200 shares on November 15, Year 2.
New Company
Statement of Retained Earnings
For the Year Ended December 31, Year 2
Line 1
$
Line 2
20,000
Line 3
.
Line 4
$31,000
The number of shares of New Company's common stock that are outstanding at December 31, Year 2 is:
a. 800
b. 200
c. 1,000
d. cannot be determined
Debit
Credit
Cash
15,000
A/R
6,000
Equipment (net)
66,000
A/P
31,000
Dividends Payable
3,000
Common Stock ($3 par, 1,000 shares issued)
3,000
APIC
27,000
Treasury Stock (200 shares)
8,000
Retained Earnings
14,000
Revenues
98,000
Expenses
78,000
Dividends Declared
3,000
.
Total
176,000
176,000
Explanation / Answer
The number of shares : Issued 1,000 Less: Treasury stock 200 Outstanding 800 The correct answer is a. 800
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.