Stocks and Transactions
|Answer each scenario a-d with one of the choices below:
Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?
The treasury stock purchased in the above question was resold by Chen, Inc. for $15,000. What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?
When working on your Week Six Checkpoint – Stocks and Transactions, please note that each scenario has questions lettered a-d. You will have 2 sets of answers when completed, one for each scenario.
Please answer each letter with the following choices
Make sure you put the appropriate letter with your choice so I will know which one you are referring to. You are not required to have a word count or APA format. Any questions please let me know. There is a template available that I require you use.