Question

in 2020, polar engines issued 150,000 shares of its $1 par common stock at $10 per share. on september 30, 2022 polar engines repurchased 20,000 shares at $15 per share to hold in treasury. finally, on july 31, 2023 polar engines resold 15,000 of its treasury stock for $20 per share. by how much did owners' equity increase or decrease on july 31, 2023?

Answer 1

On July 31, 2023, owners' equity will increase by $75,000.

What is the equity of the owner?

Owner's equity basically refers to the owner's rights to the company's assets. It is what remains for the owner after all liabilities have been deducted from assets. A sole proprietorship is generally referred to as having "owner's equity."

The sum of the owner's original investment in the company and any withdrawal made by the owner is simply referred to as owner's equity. A real estate project, for instance, with such a value of $500,000 and a loan outstanding of $400,000 would've had $100,000 in owner's equity.

Given:

Number of purchase treasury stock = 20,000 at $15

Number of sold treasury stock = 15,000

Computation:

Amount of 15000 purchased treasury stock = 15,000 × $15

Amount of purchase treasury stock = $225,000

Amount of sold treasury stock = 15,000 × selling price

= 15,000 × $20

= $300,000

owners' equity increase on July 31, 2023 by,

= $300,000 - $225,000

=$75,000

Learn more about treasury stock: https://brainly.com/question/16237465

#SPJ4