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26 June, 12:05

Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 260 shares of its common stock on May 1 for $13,000. On July 1, it reissued 130 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?

a. $13,130.

b. $6,760.

c. $21,060.

d. $130.

e. $0.

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Answers (1)
  1. 26 June, 14:34
    0
    balance in the Paid-in Capital is $130

    so correct option is d. $130

    Explanation:

    given data

    repurchased = 260 shares

    common stock = $13,000

    reissued = 130

    per share = $52

    treasury shares = $49 per share

    to find out

    balance in the Paid in Capital

    solution

    we know reuse share is 130 * $52 = 6760

    and other reuse share is 130 * $49 = 6370

    repurchased 260 shares = $13,000

    so balance is = 6760 + 6370 - $13,000

    balance in the Paid-in Capital is 13130 - 13000

    balance in the Paid-in Capital is $130

    so correct option is d. $130
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