On January 1, 2016, Metco, Inc., reported 822,100 shares of $5 par value common

Q: On January 1, 2016, Metco, Inc., reported 822,100 shares of $5 par value common

Solution: Balance Sheet Income Statement Assets = Liabilites + Stockholder's Equity Net income = Revenue - Expenses Cash (532,800) (532,800) Working: 7,200 shares of treasury stock @ $74 per share is 532,800 Balance Sheet Income Statement Assets = Liabilites + Stockholder's Equity Net income = Revenue - Expenses Cash (532,800) (532,800)

ID: 2557893 • Letter: O

Question

On January 1, 2016, Metco, Inc., reported 822,100 shares of $5 par value common stock as being issued and outstanding. On March 15, 2016, Metco, Inc., purchased for its treasury 7,200 shares of its common stock at a price of $74 per share. On August 10, 2016, 2,900 of these treasury shares were sold for $86 per share. Metco’s directors declared cash dividends of $3.10 per share during the second quarter and again during the fourth quarter, payable on June 30, 2016, and December 31, 2016, respectively. A 3% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.

Explanation / Answer

Solution:

Balance Sheet

Income Statement

Assets

Liabilites

Stockholder's Equity

Net income

Revenue

Expenses

Cash

(532,800)

Working:

7,200 shares of treasury stock @ $74 per share is 532,800