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Jasmine Adriano
on Dec 16, 2024

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Treasury Stock = Number of Common Stock Purchased × Purchase Price of Common Stock = 1,000 × $15 = $15,000

A) Treasury stock
B) Retained earnings
C) Preferred stock
D) Excess of issue price over par (preferred)
E) Common stock
F) Total paid-in capital
G) Excess of issue price over par (common)
H) Total stockholders' equity

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation, which do not confer voting rights or pay dividends.

Purchase Price

The amount of money paid to buy a good, service, or asset. It encompasses all forms of considerations including cash, assets, assumed liabilities, and other financial terms involved in a transaction.

Common Stock

An equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

  • Acquire knowledge on how to calculate and the importance of retained earnings as a component of stockholders' equity.
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JL
Jorge LiceaDec 20, 2024
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