Use the following information to answer questions 55-56.
Berne Ltd. was organized on January 1, 2020, with 300,000 no par value common shares authorized. During 2020, the corporation had the following share transactions:
Jan 4 Issued 120,000 shares at $ 10 per share
Mar 8 Issued 40,000 shares at $ 11 per share
May 17 Purchased 15,000 shares at $ 12 per share and cancelled them
Jul 6 Issued 30,000 shares at $ 13 per share
Aug 27 Issued 10,000 shares at $ 14 per share
-The total amount in the Common Shares account at December 31, 2020 is
A) $ 2,170,000.
B) $ 2,016,250.
C) $ 2,007,250.
D) $ 1,990,000.

Question

Quizplus · Accepted Answer

Jan 4: Issued 120,000 shares × $10 = $1,200,000
Mar 8: Issued 40,000 shares × $11 = $440,000
May 17: Cancelled 15,000 shares × $12 = -$180,000 (reduction in common shares)
Jul 6: Issued 30,000 shares × $13 = $390,000
Aug 27: Issued 10,000 shares × $14 = $140,000

Total amount in Common Shares account = $1,200,000 + $440,000 - $180,000 + $390,000 + $140,000 = $2,016,250.

Therefore, the answer is B.

Use the Following Information to Answer Questions 55-56