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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.

Respuesta :

Answer:

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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