Barkley’s Resort had 2,000 shares of $20 par value common stock outstanding. On

Accounting
Tutor: None Selected Time limit: 1 Day

$21 per share and later reissued them for $22 per share. What amount of profit from the re-issuance will be reported on the income statement? Was too long to put in one.

A. $400

B. $200

C. $100

D. $0


Feb 5th, 2015

As per my understanding the answer would be B. $200


since, barkley's resort bought 200 shares at a loss of $1 each since the value was 20 and they bought at $ 21.

so, purchase cost = 21* 200 = $4200


then sold at $ 22, so revenue = 22*200 = $4400

hence the profit = $4400 - 4200 = $200

Feb 5th, 2015

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