Sunland Manufacturing Corporation purchased 5400 shares of i

Sunland Manufacturing Corporation purchased 5400 shares of its own previously issued $10 par common stock for $112000. As a result of this event,

Solution

All the answers are correct

Common stock account decreased by (5400 shares x $10 par) =$54,000

Total stockholders\'equity decreased by $112000(paid for purchase)

Previous balance of Paid-in capital in excess of par account is now decreased by 112000-5400(10)=58,000