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Please use the following information for the Five (5) questions for this chapter:
(Financial Accounting)
ABC has a corporate charter that authorizes it to issue up to 100,000 shares of $1 par value common stock. The following events occur in 2022:
On January 1, ABC issues 10,000 shares of common stock for $20 per share.
On April 1, ABC declares a dividend of $2 per share.
On May 1, the dividend is paid.
On September 1, ABC repurchases 1,000 shares of its common stock for $15 per share.
On October 1, ABC declares another $2 per share dividend.
On November 1, the dividend is paid. ABC had $50,000 in net income for the year.
Question 1
What is the balance in Treasury Stock as of December 31, 2022?
Question 2
What is the balance in Common Stock, Par Value as of December 31, 2022?
Question 3
What is the balance in Additional Paid in Capital (i.e. Capital in Excess of Par) as of December 31, 2022?
Question 4
By how much does the declaration and payment of dividends during 2022 decrease net income for ABC?
Question 5
As a result of these events only, what is the balance in cash as of December 31, 2022?
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