Question

A corporation purchases 1,000 shares of its own common stock for $4,000 on Feb. 13. On April 13, half of the treasury stock was sold for $3,000. On April 26, the other half of the treasury stock was sold for $1,800. The entry to record the April 26 sale would include
i. a debit to Paid-in Capital from the Sale of Treasury Stock for $200.
ii. a credit to Cash for $1,800.
iii. a debit to Treasury Stock for $2,000.
iv. a credit to Paid-in Capital from the Sale of Treasury Stock for $1,200.
What is the total stockholders' equity based on the following data?
Common Stock $900,000
Excess of Issue Price Over Par 375,000
Retained Earnings (deficit) 50,000
a. $1,275,000
b. $900,000
c. $1,225,000
d. $1,325,000

Answer 1

Answer:

d. $1,325,000

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Explanation  

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