Question

C. Worthy Ships initially issued 460,000 shares of $1 par stock for $2,300,000 in 2021. In 2023, the company repurchased 46,000 shares for $460,000. In 2024, 23,000 of the repurchased shares were resold for $368,000. In its balance sheet dated December 31, 2024, C. Worthy's treasury stock account shows a balance of:________

Answer 1

Answer:

$230,000

Explanation:

The calculation of treasury stock account balance is shown below:-

Treasury stock account balance on December 31, 2021 balance sheet = Number of shares in treasury stock × Cost per share

= (46,000 - 23,000) × ($460,000 ÷ 46,000)

= 23,000 × $10

= $230,000

Therefore for computing the treasury stock account balance we simply applied the above formula.