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Which Answer Would Represent the Financial Statement Presentation of Stockholders $12\$ 12

Question 27

Multiple Choice

Which answer would represent the financial statement presentation of stockholders equity after the following transactions?
Issued 200 shares of $12 par value common stock for $25 a share. Five hundred shares are authorized. Purchased 75 shares of treasury stock at $22 a share.


A)
Which answer would represent the financial statement presentation of stockholders equity after the following transactions? Issued 200 shares of $12 par value common stock for $25 a share. Five hundred shares are authorized. Purchased 75 shares of treasury stock at $22 a share. A) B) Common Stock, \$ 12 par value, 500 shares authorized, \begin{array}{ll} 200 \text { shares issued and outstanding } & \$ 2,400 \\ \text { Paid in Capital in Excess of Par - Common } & \$ 2,600 \\ \text { Less: Treasury Stock, 75 shares a \$12 par value } & (\$ 900) \end{array} C) \begin{array}{l} \text { Common Stock, } \$ 12 \text { par value, } 500 \text { shares authorized, }\\ \begin{array} { l c } 200 \text { shares issued, } 425 \text { outstanding } & \$ 5,100 \\ \text { Paid in Capital in Excess of Par - Common } & \$ 5,525 \\ \text { Less: Treasury Stock, } 75 \text { shares } a \$ 22 \text { per share } & (\$ 1,650) \end{array} \end{array} D) Common Stock, \$ 25 market value, 500 shares authorized, \begin{array}{lc} 200 \text { shares issued, } 125 \text { outstanding } & \$ 5,000 \\ \text { Less: Treasury Stock, } 75 \text { shares } a \$ 22 \text { per share } & (\$ 1,650) \end{array}
B)
Common Stock, $12\$ 12 par value, 500 shares authorized,
200 shares issued and outstanding $2,400 Paid in Capital in Excess of Par - Common $2,600 Less: Treasury Stock, 75 shares a $12 par value ($900) \begin{array}{ll}200 \text { shares issued and outstanding } & \$ 2,400 \\\text { Paid in Capital in Excess of Par - Common } & \$ 2,600 \\\text { Less: Treasury Stock, 75 shares a \$12 par value } & (\$ 900) \end{array}
C)
 Common Stock, $12 par value, 500 shares authorized, 200 shares issued, 425 outstanding $5,100 Paid in Capital in Excess of Par - Common $5,525 Less: Treasury Stock, 75 shares a$22 per share ($1,650) \begin{array}{l}\text { Common Stock, } \$ 12 \text { par value, } 500 \text { shares authorized, }\\\begin{array} { l c } 200 \text { shares issued, } 425 \text { outstanding } & \$ 5,100 \\\text { Paid in Capital in Excess of Par - Common } & \$ 5,525 \\\text { Less: Treasury Stock, } 75 \text { shares } a \$ 22 \text { per share } & (\$ 1,650) \end{array}\end{array}
D)
Common Stock, $25\$ 25 market value, 500 shares authorized,
200 shares issued, 125 outstanding $5,000 Less: Treasury Stock, 75 shares a$22 per share ($1,650) \begin{array}{lc}200 \text { shares issued, } 125 \text { outstanding } & \$ 5,000 \\\text { Less: Treasury Stock, } 75 \text { shares } a \$ 22 \text { per share } & (\$ 1,650) \end{array}

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