An analysis of stockholders' equity of Sheridan Company as of January 1, 2021, is as follows: Common stock, par value $20; authorized 100,000 shares; issued and outstanding 83000 shares $1660000 Paid-in capital in excess of par 830000 Retained earnings 763000 Total $3253000 Sheridan uses the cost method of accounting for treasury stock and during 2021 entered into the following transactions: Acquired 2420 shares of its stock for $75020. Sold 2000 treasury shares at $37 per share. Sold the remaining treasury shares at $19 per share. Assuming no other equity transactions occurred during 2021, what should Sheridan report at December 31, 2021, as total additional paid-in capital? Hint: Round intermediate calculations to 0 decimal places, e.g. 5,275. $836960 O $824960 O $830000 O $847040

An analysis of stockholders' equity of Sheridan Company as of January 1, 2021, is as follows: Common stock, par value $20; authorized 100,000 shares; issued and outstanding 83000 shares $1660000 Paid-in capital in excess of par 830000 Retained earnings 763000 Total $3253000 Sheridan uses the cost method of accounting for treasury stock and during 2021 entered into the following transactions: Acquired 2420 shares of its stock for $75020. Sold 2000 treasury shares at $37 per share. Sold the remaining treasury shares at $19 per share. Assuming no other equity transactions occurred during 2021, what should Sheridan report at December 31, 2021, as total additional paid-in capital? Hint: Round intermediate calculations to 0 decimal places, e.g. 5,275. $836960 O $824960 O $830000 O $847040

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2: Reacquired 71,000 shares at $12.10. March 17: Sold 21,000 shares at $14.05. May 17: Sold 26,000 shares at $8.05. Southwestern had issued 100,000 shares of its $1 par common stock for $10 several months ago.Required:Prepare the journal entries to record the above transactions, using the cost method.
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