Question

3. On January 2, 2018, the first year of operations, Brunswick Corp., issued 15,000 shares of $10 par value common stock for $15 per share.  On July 1, 2018, 2,000 of these shares were reacquired for $16 each. On September 1, 2018 Brunswick Corp. reissued 600 shares of its treasury stock for $22 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Brunswick will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock.

4. On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $20 per share. The balance in the common stock account, before the stock dividend was declared, was $1,200,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?

Answer 1

Answer 3-

Common Stock 15000 shares issued at $15 per share (15000 @$15)

Total Paid in capital  = $ 225000

  Less Stock Reacquired Treasure Stock

(2000@ 16 Per share) = ($ 32000)

Add Treasury Share

(600@ 22 Per Share) = $ 13200) = ($ 18800)

Total Stock Holder's Equity = $ 206200

Answer 4-

Common stock value after stock dividend 5% declared (120000@$20) = $ 2400000

Less Common stock value before dividend declare (120000@$10) = ($1200000) (Share Capital)

Additional paid in capital= $1200000