Balance in the paid-in capital


Please assist with the given problem.

Davidson Co. was organized on January 2, 2007, with 500,000 authorized shares of $10 par value common stock. During 2007, Davidson had the following capital transactions:

January 5 - issued 375,000 shares at $14 per share.

July 27 - purchased 25,000 shares at $11 pr share.

November 25 - sold 15,000 share of treasury stock at $13 per share.

Davidson used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2007?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Balance in the paid-in capital
Reference No:- TGS02042933

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)