Answer:
a. Additional paid-in capital:
= Amount received from shares issued - Common stock
= (33 per share * 93,000) - 465,000
= $2,604,000
b. Beginning retained earnings:
Ending retained earnings = Beginning retained earnings + Net income - Dividend
830,000 = Beginning retained earnings + 1,120,000 - 720,000
Beginning retained earnings = 830,000 - 1,120,000 + 720,000
= $430,000
c. Treasury stock:
= Shares issued - Shares outstanding
= 93,000 - 65,000
= 28,000 shares
