Answer:
Llama Co.
The amount that Llama should report as Additional Paid -in Capital in its December 31, 2021 balance sheet is:
= $36 million.
Explanation:
a) Data and Analysis:
Authorized capital, 14 million at $1 par common shares
January 1: Issued 5 million at $19 per share:
Debit Cash $95 million
Credit Common Stock $5 million
Credit Paid-in Capital in Excess of Par-Common $90 million
June 3: Purchased 6 million shares of treasury stock at $33 per share:
Debit Treasury Stock $6 million
Debit Paid-in Capital in Excess of Par-Common $192 million
Credit Cash $198 million
December 28: Sold the 6 million shares of treasury stock at $24 per share:
Debit Cash $144 million
Credit Treasury Stock $6 million
Credit Paid-in Capital in Excess of Par-Common $138 million
Summary of Paid-in Capital in Excess of Par-Common Account:
January 1: Cash $90 million (Credit)
June 3: Cash (192 million) (Debit)
Dec. 28: Cash 138 million (Credit)
Dec. 31: Balance $36 million (Credit)
