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Caesar and company required 60000 shares of its $1 park. Common stock for $14 per share. On March 1st on April 1st, they sold 10000 Treasury shares for $20 per share on May 1st. They sold 6000 Treasury shares for $5 per share, assuming no prayer balance and additional paid and capital from Treasury transactions. What is the ending balance in this account following these transactions



Answer :

Answer:

$610,000

Explanation:

Given the transactions involving Caesar and company's treasury shares:

1. Purchase of 60,000 common shares at $14 per share:

- Total cost = 60,000 shares x $14/share = $840,000

2. Sale of 10,000 treasury shares at $20 per share on April 1st:

- Revenue from sale = 10,000 shares x $20/share = $200,000

3. Sale of 6,000 treasury shares at $5 per share on May 1st:

- Revenue from sale = 6,000 shares x $5/share = $30,000

To find the ending balance in the account, we calculate the total changes in the treasury stock account:

Initial balance (purchased shares) - Revenue from sales = Ending balance

840,000 - (200,000 + 30,000) = 840,000 - 230,000 = 610,000

Therefore, the ending balance in the treasury stock account after these transactions is $610,000.

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