An analysis of stockholders' equity of Hahn Corporation as of January 1, 2012, is as follows:

Common stock, par value $20; authorized 100,000 shares;

issued and outstanding 93000 shares $1860000

Paid-in capital in excess of par 930000

Retained earnings 762000

Total $3552000

Concord uses the cost method of accounting for treasury stock and during 2021 entered into the following transactions:

Acquired 2460 shares of its stock for $73800. Sold 2000 treasury shares at $35 per share. Sold the remaining treasury shares at $20 per share.

Assuming no other equity transactions occurred during 2012, what should Hahn report at December 31, 2012, as total additional paid-in capital?

Assuming no other equity transactions occurred during 2012, what should Hahn report at December 31, 2012, as total additional paid-in capital?

additional paid in capital = $930,000 + $30,000 = $960,000

Explanation:

Common stock, par value $20; authorized 100,000 shares; issued and outstanding 93000 shares $1,860,000

Paid-in capital in excess of par $930,000

Retained earnings $762,000

Total $3,552,000

Acquired 2460 shares of its stock for $73800.

Dr Treasury stock 73,800 (paid $30 per stock)

Cr Cash 73,800

Sold 2000 treasury shares at $35 per share.

Dr Cash 70,000

Cr Common stock 40,000 ( = $20 x 2,000)

Cr Additional paid in capital 30,000

Sold the remaining treasury shares at $20 per share.

Dr Cash 9,200

Cr Common stock 9,200 ( = $20 x 460)