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XYZ Company has the following information: In documents filed with the Secretary

ID: 2451330 • Letter: X

Question

XYZ Company has the following information:

In documents filed with the Secretary of State of West Virginia on December 31, 2012, the company charter specifies that XYZ may issue 400,000 shares with $1 par value per share. On January 1, 2013, XYZ issued and sold 50,000 shares at an average price of $10; and on July 1, 2013, the company issued another 10,000 shares at an average price of $20. On December 31, 2013, the company purchased for treasury stock 5,000 shares at an average price of $15 (to fund the annual executive bonus program).

1. Determine the outstanding shares at year end.

2. Calculate the amount in the “additional paid-in-capital – common stock” account at year end.

Explanation / Answer

XYZ Company has the following information: In documents filed with the Secretary