C. Worthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2018. In 2020, the company repurchased 30,000 shares for $300,000. In 2021, 15,000 of the repurchased shares were resold for $240,000. In its balance sheet dated December 31, 2021, C. Worthy's treasury stock account shows a balance of: Multiple Choice $ 60,000 $300,000 $ 0 $150,000

Question

Business

Janelle Harrison

27 November, 08:52

C. Worthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2018. In 2020, the company repurchased 30,000 shares for $300,000. In 2021, 15,000 of the repurchased shares were resold for $240,000. In its balance sheet dated December 31, 2021, C. Worthy's treasury stock account shows a balance of: Multiple Choice $ 60,000 $300,000 $ 0 $150,000

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Answers (1)

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Agustin Nash · Answer 1

Balance of treasury stock account = 15000 shares

so

correct option is $150,000

Explanation:

given data

initially issued = 300,000

shares = $1 par stock

solution

we know here that Shares repurchased in 2020 is

Shares repurchased in 2020 = 30000 shares for $300,000

and half of the treasury so

resale of shares in 2021 is = 15000 shares

so Balance of treasury stock account dated December 31, 2021 is

Balance of treasury stock account = 30000 - 15000

Balance of treasury stock account = 15000 shares

so

correct option is $150,000