Wendell Company provided the following pertaining to its recent year of operation:
Common stock with a $10,000 par value was sold for $50,000 cash.
Cash dividends totaling $20,000 were declared,of which $15,000 were paid.
Net income was $70,000.
A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value.
Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's capital in excess of par increase during the recent year of operation?
A)$60,000
B)$58,000
C)$67,000
D)$24,000

Question

Wendell Company provided the following pertaining to its recent year of operation:
 Common stock with a $10,000 par value was sold for $50,000 cash.
Cash dividends totaling $20,000 were declared,of which $15,000 were paid.
Net income was $70,000.
A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value.
 Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's capital in excess of par increase during the recent year of operation?
A)$60,000
B)$58,000
C)$67,000
D)$24,000

Quizplus · Accepted Answer

Capital in excess of par increase ($60,000) = Common stock cash issue ($50,000 - $10,000) + Common stock dividend ($23,000 - $5,000) + Treasury stock sale ($9,000 - $7,000)

Wendell Company Provided the Following Pertaining to Its Recent Year