On January 1, 2015, Stronger Corporation, a publicly traded company, had these s
ID: 2450382 • Letter: O
Question
On January 1, 2015, Stronger Corporation, a publicly traded company, had these shareholders’ equity accounts:
Common shares (Unlimited number of shares authorized, 50,000 issued)
$500,000
Contributed capital
$15,000
Retained earnings
$200,000
On Feb 1 the company reacquired and retired 2,000 shares for $22.00 per shares. The stock’s market price was $20.00. February 15th is the date of record and March 1st is the date of payment. On February 15th the stock’s market price was $21.00 and on March 1st the stock’s market price was $23.00.
Calculate the balance in number of common shares, dollars of common shares, dollars of contributed capital and dollars of retained earnings after the above transactions at March 1st, 2015.
January 1, 2015
March 1, 2015
Number of common shares
50,000
Common shares
$500,000
$
Contributed capital
$15,000
$
Retained earnings
$200,000
$
Common shares (Unlimited number of shares authorized, 50,000 issued)
$500,000
Contributed capital
$15,000
Retained earnings
$200,000
Explanation / Answer
On January 1, 2015, Stronger Corporation, a publicly traded company, had these s
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