From page 10-3 of the VLN, when the company sells 100 shares of the treasury stock for $11 per share, how much did total stockholders’ equity increase?______ TREASURY STOCK-Contra Equity (reduces SEà does NOT reduce common stock)-Issued but NOT outstanding-Recorded at COST-No voting rights-No dividend or distribution rightsEconomic Gain on sale of Treasury Stock (Resold for more thancost)-not shown as a GAIN-increase Additional paid in capitalEconomic Loss on sale of Treasury Stock (Resold for less thancost)-not shown as a LOSS-decrease Additional paid in capital if available, or, if not available-decrease Retained EarningsPractice(a) A firm purchases 1,000 shares of their $0.10 par common stockfor $12 per share, record the purchase.Balance SheetIncome StatementLiabilitiesStockholders' EquityRevenues Expenses Net IncomeAssetsCash -12,000Treasury stock + 12,000àSE -12,000Cash Treasury Stock APIC-TS(b) A firm resells 100 shares of the treasury stock purchased abovefor $14 per share, record the sale.(c) A firm resells 100 shares of the treasury stock purchased abovefor $11 per share, record the sale. PracticeJ Corp Stockholders' Equity section from their 12/31 BalanceSheet is given:Paid in CapitalCommon stock ($0.01 par; authorized 100,000,000 shares, issuedshares and$1,500471,000450,000(30,000)outstandingAdditional paid in capitalRetained earningsTreasury stock (2,000 shares)Total Stockholders' EquityComplete the following statements and show your computations:1. The number of shares of common stock issued wasSharesShares2. The number of shares of common stock outstanding was3. The average sales price of the common stock when issued was $ per share4. What is the cost per share for the treasury stock?5. Total Stockholders' Equity isper share6. Assume 500 shares of the treasury stock are resold at $20 pershare. Record the sale of treasury stock:7. How much did "additional paid in capital" change when the 500 shares oftreasury stock were sold?8. What is the remaining balance in the Treasury Stock account?9. What does the Stockholders’ Equity Section look like after the 500shares of treasury stock is sold?Paid in CapitalCommon stock ($0.01 par; authorized 100,000,000 shares, issuedshares andoutstanding$1,500Additional paid in capitalRetained earnings450,000Treasury stock (Total Stockholders' Equityshares)$PART B: Earned CapitalRetained EarningsAccumulated Deficit

When the company sells 100 shares of treasury stock at $11 per share which were purchased at The $12…

Answered: From page 10-3 of the VLN, when the…

From page 10-3 of the VLN, when the company sells 100 shares of the treasury stock for $11 per share, how much did total stockholders’ equity increase?

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

From page 10-3 of the VLN, when the company sells 100 shares of the treasury stock for $11 per share, how much did total stockholders’ equity increase?______

TREASURY STOCK
-Contra Equity (reduces SEà does NOT reduce common stock)
-Issued but NOT outstanding
-Recorded at COST
-No voting rights
-No dividend or distribution rights
Economic Gain on sale of Treasury Stock (Resold for more than
cost)
-not shown as a GAIN
-increase Additional paid in capital
Economic Loss on sale of Treasury Stock (Resold for less than
cost)
-not shown as a LOSS
-decrease Additional paid in capital if available, or, if not available
-decrease Retained Earnings
Practice
(a) A firm purchases 1,000 shares of their $0.10 par common stock
for $12 per share, record the purchase.
Balance Sheet
Income Statement
Liabilities
Stockholders' Equity
Revenues Expenses Net Income
Assets
Cash -12,000
Treasury stock + 12,000à
SE -12,000
Cash Treasury Stock APIC-TS
(b) A firm resells 100 shares of the treasury stock purchased above
for $14 per share, record the sale.
(c) A firm resells 100 shares of the treasury stock purchased above
for $11 per share, record the sale.

Practice
J Corp Stockholders' Equity section from their 12/31 Balance
Sheet is given:
Paid in Capital
Common stock ($0.01 par; authorized 100,000,000 shares, issued
shares and
$1,500
471,000
450,000
(30,000)
outstanding
Additional paid in capital
Retained earnings
Treasury stock (2,000 shares)
Total Stockholders' Equity
Complete the following statements and show your computations:
1. The number of shares of common stock issued was
Shares
Shares
2. The number of shares of common stock outstanding was
3. The average sales price of the common stock when issued was $ per share
4. What is the cost per share for the treasury stock?
5. Total Stockholders' Equity is
per share
6. Assume 500 shares of the treasury stock are resold at $20 per
share. Record the sale of treasury stock:
7. How much did "additional paid in capital" change when the 500 shares of
treasury stock were sold?
8. What is the remaining balance in the Treasury Stock account?
9. What does the Stockholders’ Equity Section look like after the 500
shares of treasury stock is sold?
Paid in Capital
Common stock ($0.01 par; authorized 100,000,000 shares, issued
shares and
outstanding
$1,500
Additional paid in capital
Retained earnings
450,000
Treasury stock (
Total Stockholders' Equity
shares)
$
PART B: Earned Capital
Retained Earnings
Accumulated Deficit

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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