USA: +1 (725) 712-1730 
Sign in
An analysis of stockholders’ equity of Waterway Industries as of January 1, 2018, is as follows:
| Common stock, par value $20; authorized 100,000 shares; | ||
| issued and outstanding 93000 shares | $1860000 | |
| Paid-in capital in excess of par | 930000 | |
| Retained earnings | 759000 | |
| Total | $3549000 | |
Waterway uses the cost method of accounting for treasury stock and during 2018 entered into the following transactions:
Acquired 2510 shares of its stock for $77810.
Sold 2130 treasury shares at $36 per share.
Sold the remaining treasury shares at $20 per share.
Assuming no other equity transactions occurred during 2018, what should Waterway report at December 31, 2018, as total additional paid-in capital?
| $930000 |
| $925820 |
| $936470 |
| $944830 |
Expert Answer
C. $936,470
Waterway should report at December 31, 2018, as total additional paid-in capital:
= $930,000 + (2,130 X $5) – (380 X $11)
= $930,000 + $10,650 – $4,180
= $936,470
