The following information applies to the questions displayed below. Worldwide Co

Question

The following information applies to the questions displayed below. Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,400 and the following selected transactions occurred in the order given: a. Issued 62,000 shares of the common stock at $13 cash per share. b. Reacquired 2,200 shares at $16 cash per share from stockholders; the shares are now held in treasury c. Reissued 1,100 of the shares in transaction (b) two months later at $19 cash per share. value Required information 10.00 points Required 1. Indicating the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Es, C.

Explanation / Answer

Impact of transaction :

Assets = Liabilities + Stockholder's equity a. Cash 806000 Common Stock 620000 Paid in capital in excess of par value-Common Stock 186000 b Cash -35200 Treasury Stock -35200 c Cash 20900 Treasury Stock 17600 Paid in capital from sale of treasury Stock 3300

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