Question

TB MC Qu. 18-81 (Algo) C. Worthy Ships initially issued... C. Worthy Ships initially issued 490,000 shares of $1 par stock for $2,450,000 in 2021. In 2023, the company repurchased 49,000 shares for $490,000. In 2024, 24,500 of the repurchased shares were resold for $392,000. In its balance sheet dated December 31, 2024, C. Worthy's treasury stock account shows a balance of:_____.

Answer 1

$245,000

Step-by-step explanation:

Calculation for what Worthy's treasury stock

Account Balance will show

Based on the information given the year 2023 treasury stock repurchase that was made will be debited with the amount of $490,000 and Since we were told that half of the treasury stock was resold the amount of $245,000 (490,000*50%) will be credited to treasury stock while the amount of $147,000 ($392,000-$245,000) will be credited to Paid-in capital share repurchase

Treasury stock account balance=($490,000 - $245,000)

Treasury stock account balance=$245,000

Therefore C. Worthy's treasury stock account shows a balance of: $245,000