PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOWWORK.
Below is the shareholders’ equity section of Matt Co.’s balancesheet for December 31, 2018 and December 31, 2017. Matt uses thetreasury stock method to account for repurchases. During 2017, Mattrepurchased 1,000 shares at $10 per share.
| December 31, 2018 | December 31, 2017 |
Common Stock (par value $0.01) | 120 | 100 |
Paid-in Capital, in excess of par | 189,880 | 149,900 |
Paid-in Capital, share repurchase | 3,200 | 0 |
Treasury Stock | (6,000) | (10,000) |
Retained Earnings | 54,000 | 53,000 |
| 241,200 | 193,000 |
During 2018, the following events took place:
On January 17, Matt issued new common shares of stock to newinvestors for $20 per share.
On September 12, Matt reissued 400 of the shares it had intreasury.
On December 18, the company declareddividends of to be paid to shareholders. The dividend will be paidon January 6, 2019.
For the year 2018, Matt reported netincome of $6,000.
- How many shares were issued on January 17, 2018? (5points)
2,000 new shares
Cash 40,000
CommonStock 20
Paid-inCapital, in excess ofpar 39,980
- When Matt reissued its own shares on September 12, 2018, howmuch did the company receive per share? (5 points)
$18 per share
Cash 7,200
TreasuryStock 4,000
Paid-inCapital, sharerepurchase 3,200
- How much dividends did Matt declare on December 18, 2018? (5points)
53,000 + 6,000 – Dividends =54,000
Dividends = $5,000
