The balance in Common Shares on January 1, 2020, and December 31, 2020, is respectively $145,000 and $172,500. During the year, $57,000 repurchase of shares was recorded. During the
Year, shares were issued. The proceeds from the issue of shares amounted to:
A) $84,500
B) $260,500
C) $29,500
D) $64,500

Question

Quizplus · Accepted Answer

The proceeds from the issue of shares can be calculated by considering the net change in the common shares balance and the repurchase of shares. The net change in common shares balance is $172,500 - $145,000 = $27,500. Since $57,000 worth of shares were repurchased, the total proceeds from the issue of shares must offset both the net change and the repurchase amount, which is $27,500 + $57,000 = $84,500.

The Balance in Common Shares on January 1, 2020, and December