H a. Provide entries to record the treasury stock transactions. Date Jan. 15 Cashi Mar. 1 Account Name To record acquisition of common stock To record sale of treasury stock Oct. 15 To record sale of treasury stock Dec. 31 Dr. 150,000 0 Cr. 150,000 0 0 . 0 0 ° 0 0 0 0 0 0 0 0 0 0 0 0 0 To record sale of treasury stock b. Prepare the stockholders' equity section of the balance sheet after these transactions are recorded. • Note: Use a negative sign with contra account(s). Stockholders' Equity Section As of December 31 Preferred stock, par $10, 100,000 shares issued and outstanding $ Common stock, nopar, 100,000 shares issued 0 0 0 Additional paid-in capital Retained earnings Less: Treasury stock Total stockholders' equity 0 0 0 Recording Treasury Stock Transactions Han Tire Corporation has outstanding 100,000 shares of preferred stock, $10 par, and also 100,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the preferred stock is $400,000. The retained earnings balance is $816,000. The company then enters into the following transactions during the year. Jan. 15: Purchased 5,000 shares of its common stock at $30 per share for the treasury. Mar. 1: Sold 1,000 shares of the common treasury stock for $26 per share. Oct. 15: Sold 500 shares of the common treasury stock for $32 per share. Dec. 31: Sold 500 shares of the common treasury stock for $29 per share.
H a. Provide entries to record the treasury stock transactions. Date Jan. 15 Cashi Mar. 1 Account Name To record acquisition of common stock To record sale of treasury stock Oct. 15 To record sale of treasury stock Dec. 31 Dr. 150,000 0 Cr. 150,000 0 0 . 0 0 ° 0 0 0 0 0 0 0 0 0 0 0 0 0 To record sale of treasury stock b. Prepare the stockholders' equity section of the balance sheet after these transactions are recorded. • Note: Use a negative sign with contra account(s). Stockholders' Equity Section As of December 31 Preferred stock, par $10, 100,000 shares issued and outstanding $ Common stock, nopar, 100,000 shares issued 0 0 0 Additional paid-in capital Retained earnings Less: Treasury stock Total stockholders' equity 0 0 0 Recording Treasury Stock Transactions Han Tire Corporation has outstanding 100,000 shares of preferred stock, $10 par, and also 100,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the preferred stock is $400,000. The retained earnings balance is $816,000. The company then enters into the following transactions during the year. Jan. 15: Purchased 5,000 shares of its common stock at $30 per share for the treasury. Mar. 1: Sold 1,000 shares of the common treasury stock for $26 per share. Oct. 15: Sold 500 shares of the common treasury stock for $32 per share. Dec. 31: Sold 500 shares of the common treasury stock for $29 per share.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 15E
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Question
Transcribed Image Text:H
a. Provide entries to record the treasury stock transactions.
Date
Jan. 15 Cashi
Mar. 1
Account Name
To record acquisition of common stock
To record sale of treasury stock
Oct. 15
To record sale of treasury stock
Dec. 31
Dr.
150,000
0
Cr.
150,000
0
0
.
0
0
°
0
0
0
0
0
0
0
0
0
0
0
0
0
To record sale of treasury stock
b. Prepare the stockholders' equity section of the balance sheet after these transactions are recorded.
• Note: Use a negative sign with contra account(s).
Stockholders' Equity Section
As of December 31
Preferred stock, par $10, 100,000 shares issued and outstanding $
Common stock, nopar, 100,000 shares issued
0
0
0
Additional paid-in capital
Retained earnings
Less: Treasury stock
Total stockholders' equity
0
0
0
Transcribed Image Text:Recording Treasury Stock Transactions
Han Tire Corporation has outstanding 100,000 shares of preferred stock, $10 par, and also 100,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the
preferred stock is $400,000. The retained earnings balance is $816,000.
The company then enters into the following transactions during the year.
Jan. 15: Purchased 5,000 shares of its common stock at $30 per share for the treasury.
Mar. 1: Sold 1,000 shares of the common treasury stock for $26 per share.
Oct. 15: Sold 500 shares of the common treasury stock for $32 per share.
Dec. 31: Sold 500 shares of the common treasury stock for $29 per share.
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