Reference no: EM132626879

Question - On June 15, 2008, Jefferson Adams, Inc. had 15,000 shares of $5 par value common stock issued and outstanding. These shares of common stock had originally been issued for $12/share. The company had never repurchased or reissued any of the issued an<l outstanding shares. However, during the year, the company engaged in the following transactions:

Reacquired 2,000 shares of common stock for $41/share.

Reissued 1,000 shares of common stock for $43/share.

Assume that Jefferson Adams, Inc. uses the cost method to account for treasury stock, and that no other transactions affected the contributed capital accounts during the year.

At the end of the year, which of the following statements is NOT true?

A. Additional Paid in Capital - Treasury Stock will have a $2,000 balance.

B. Additional Paid in Capital - Common Stock will have a balance of $105,000.

C. Treasury Stock will have a balance of $41,000.

D. There were 15,000 shares of $5 par value common stock issued and outstanding.

E. There is a balance of $75,000 in the Common Stock account.