The balance sheet of Messi Services included the following shareholders\' equity
ID: 2569253 • Letter: T
Question
The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2016: ($ in millions) Common stock ($1 par value, authorized 200 million shares, issued and outstanding 180 million shares) $180 Paid-in capital - excess of par 1,080 Retained earnings 560 Total shareholders’ equity $1,820
On January 5, 2017, Holmes purchased 2 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital- excess of par and retained earnings accounts are:
Paid-in capital - excess of par Retained earnings
a. $1,068 $556 b. $1,064 $560 c. $1,080 $560 d. $1,080 $544
Explanation / Answer
Paid-in capital- excess of par = 1080 Retained earnings = 560 Option C is correct
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