Twin Towns, Inc., was authorized to issue 200,000 shares of common stock and ori

Question

Twin Towns, Inc., was authorized to issue 200,000 shares of common stock and originally issued 100,000 shares of $10 par value stock at $18 per share. Subsequently, 25,000 shares were repurchased at $20, of which 10,000 were subsequently resold at $23.





Assume the company's retained earnings balance is $120,000.

a.Prepare the stockholders' equity section of Twin Towns's balance sheet, including all appropriate disclosures.







Stockholders' equity?


Total paid-in capital?



Total paid-in capital and retained earnings?

Total stockholders' equity

Explanation / Answer

Answer: Hope will be helpful Common stock- $10 par; 200,000 shares authorized, 100,000 issued, 15,000 shares in treasury 1,000,000 Additional paid in capital on common stock 800,000 Additional paid in capital on treasury stock 30,000 Total paid in capital 1,830,000 Retained earnings 120,000 Total paid in capital and retained earnings 1,950,000 Less cost of treasury stock 300,000 Total stockholders equity 1,650,000

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