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Aneli [31]
3 years ago
7

Pugh Co. reported the following in its statement of stockholders' equity on January 1, 20X4:

Business
1 answer:
Elan Coil [88]3 years ago
6 0

Answer:

a) $550,000

Explanation:

Treasury stock transactions do not affect shares issued, because treasury shares are included in issued shares. The only event during the year affecting the total par value of common stock issued is the July 9 issuance of shares that were not issued before.

The stock split does not change total par of shares issued, because par is cut in half and the number of shares is doubled. Treasury shares are protected, meaning they are also doubled and have their par cut in half. The total par of issued common stock at year-end is $550,000:

$500,000 from January 1

Plus $50,000 from July 9 issuance: 10,000 × $5

Equals $550,000 total par of issued shares.

Source: https://www.brainscape.com/flashcards/dividends-7208677/packs/11475096

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