How many shares of treasury stock does the corporation have? What does it represent? How does it affect stockholder's equity? AutoSaveAccounting 2102 Assessment Fall 2020 - ExcelO SearchMorgan Claire McGrew MC口FileHomeInsertDrawPage LayoutFormulasDataReviewViewHelpS ShareP CommentsCalibri14A A2 Wrap TextCurrencyE InsertΣPasteDeleteBIUEMerge & Center$ - %> 58 99Conditional Format as00CellSort & Find &IdeasSensitivityFormatting Table StylesFormatFilter Select -ClipboardFontAlignmentNumberStylesCellsEditingIdeasSensitivityG193402000AВH.KMRetaied Earnings: $250,000Treasury Stock: 8000 shares @ $2 per shareStockholder's Equity:6 Paid- In Capital:Preferred Stock 5%, $4 par (8000 sharesauthorized, 6000 isšued and outstanding)Excess of issue price over par8.$24,000.00$60,000.00Paid in Capital - PreferredCommon Stock, $2 par (200,000 shares authorized,125,000 issued)Excess of issue price over par10$84,000.001112$250,000.0013$1,250,000.00Paid - In Capital - Common Stock$1,500,000.0014Total Paid- In Capital$1,584,000.00$250,000.001516 Retained Earnings:17Total$3,418,000.0018 Treasury Stock (8000 shares at cost)19 Total Stockholder's Equity$16,000.00$3,402,000.002021InstructionsStockholder's Equity SectionQuestions100%1:30 PMP Type here to searcha11/25/2020124.5.

Introduction Treasury stock: Treasury stock is the company’s its own stock which company purchases from outstanding shares in the market. Company may decide to retire these shares or choose to hold them for resale in future dates. Treasury stock is the difference between issued stock and outstanding stock. When treasury stock is purchased, if we do not know par value, stock is valued at cost price otherwise valued at par value. So entries on purchase of treasury stock at cost price as follows. Treasury stock A/c DR [at cost price] To cash A/c .Number of common shares issued is equal to Number of common shares outstanding and number of shares bought back.Here corporation have 8,000 shares of treasury stock. It represents 8,000 common stock is purchased by company from outstanding shares in market. It is buyback of common stock of its own shares by the company. Treasury stock decreases amount of common stock and not retained earnings Purchase of treasury stock decreases total stockholders’ equity by the amount of the cost of the treasury stock.

Business

Accounting

Stockholder's Equity: Paid - In Capital: Retaied Earnings: $250,000 Treasury Stock: 8000 shares @ $2 per share Preferred Stock 5%, $4 par (8000 shares authorized, 6000 isšued and oitstanding) Excess of issue price over par $24,000.00 $60.000.00 Paid in Capital - Preferred 11 Common Stock, $2 par (200,000 shares authorized, 125,000 issued) S৪4,000,00 $250,000.00 $1,250,000.00 12 13 Excess of issue price over par Paid - In Capital - Common Stock Total Paid - In Capital 16 Retained Earnings: 14 $1,500,000.00 $1,584,000.00 $250,000.00 15 17 Total $3,418,000.00 18 Treasury Stock (8000 shares at cost) 19 Total Stockholder's Equity $16,000.00 $3,402,000.00 20

Stockholder's Equity: Paid - In Capital: Retaied Earnings: $250,000 Treasury Stock: 8000 shares @ $2 per share Preferred Stock 5%, $4 par (8000 shares authorized, 6000 isšued and oitstanding) Excess of issue price over par $24,000.00 $60.000.00 Paid in Capital - Preferred 11 Common Stock, $2 par (200,000 shares authorized, 125,000 issued) S৪4,000,00 $250,000.00 $1,250,000.00 12 13 Excess of issue price over par Paid - In Capital - Common Stock Total Paid - In Capital 16 Retained Earnings: 14 $1,500,000.00 $1,584,000.00 $250,000.00 15 17 Total $3,418,000.00 18 Treasury Stock (8000 shares at cost) 19 Total Stockholder's Equity $16,000.00 $3,402,000.00 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

A: Stockholders are the owners, who invest in the company in the form of cash or kind. They can be…

Q: What are the sources of gains for bondholders Interest payments Dividends Stock split Capital gains

A: Bondholders An investor or the owner of debt instruments, which are frequently issued by…

Q: how does earnings extremely important to a publicly traded company?

A: Publicly Traded Company Corporations that have sold their shares on a public stock exchange through…

Q: Why would a corporation have multiple stock share classes? What are your thoughts?

A: Multiple stock share class means division of shares into different classes based on : i) Voting…

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

Q: What are some reasons corporations issue stock dividends?

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: What is the impact of issuing new shares on stockholder's equity?

A: Stockholder's equity, sometimes referred to as shareholders' equity or equity capital, is the…

Q: What is a stock split. How does shareholder's equity change after a stock split?

A: Shareholder’s equity: It is the owner’s share in the business after paying off all the liabilities…

Q: who decided whether to pay dividend?

A: Dividends:A dividend refers to a portion of a company's profits that is distributed to its…

Q: How many shares of common stock are outstanding? How many shares of preferred stock are outstanding?

A: As per the BNED requirements, each question is answered to the maximum of the first 3 sub parts…

Q: Why do corporations issue stock dividends?

A: Stock dividend refers to those dividend which is paid by the business organization to their…

Q: What are the advantages of holding stock in a company versus holding bonds issued by the same…

A: Stock is a security that represents the ownership of the fraction of a corporation. Bond is a debt…

Q: What is founders’ shares?

A: Founders shares: Founders shares is the shares released to the originators of a public corporation…

Q: How are taxes paid on stocks owned ?

A: Tax on stock owned occurs on two situations: 1) Dividend: when dividend is paid by company, Tax is…

Q: hy would a company choose to not pay dividends on its common stock?

A: Dividends are the return earned by the shareholders in lieu of the amount invested in company's…

Q: Wheaton Inc. had the following balances as of December 31, 2021: -Contributed surplus- common share…

A: Shareholder's Equity: Shareholders' equity (also known as corporate net worth) is a measure of how…

Q: What factors go into valuing a company's stock

A: This question explains What factors go into valuing a company's stock:

Q: What does shareholder’s equity includes? Explain them.

A: Shareholder’s equity: The claims of owner's on a company’s resources after the liabilities are paid…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Question

How many shares of treasury stock does the corporation have? What does it represent? How does it affect stockholder's equity?

AutoSave
Accounting 2102 Assessment Fall 2020 - Excel
O Search
Morgan Claire McGrew MC
口
File
Home
Insert
Draw
Page Layout
Formulas
Data
Review
View
Help
S Share
P Comments
Calibri
14
A A
2 Wrap Text
Currency
E Insert
Σ
Paste
Delete
BIU
EMerge & Center
$ - %
> 58 99
Conditional Format as
00
Cell
Sort & Find &
Ideas
Sensitivity
Formatting Table Styles
Format
Filter Select -
Clipboard
Font
Alignment
Number
Styles
Cells
Editing
Ideas
Sensitivity
G19
3402000
A
В
H.
K
M
Retaied Earnings: $250,000
Treasury Stock: 8000 shares @ $2 per share
Stockholder's Equity:
6 Paid- In Capital:
Preferred Stock 5%, $4 par (8000 shares
authorized, 6000 isšued and outstanding)
Excess of issue price over par
8.
$24,000.00
$60,000.00
Paid in Capital - Preferred
Common Stock, $2 par (200,000 shares authorized,
125,000 issued)
Excess of issue price over par
10
$84,000.00
11
12
$250,000.00
13
$1,250,000.00
Paid - In Capital - Common Stock
$1,500,000.00
14
Total Paid- In Capital
$1,584,000.00
$250,000.00
15
16 Retained Earnings:
17
Total
$3,418,000.00
18 Treasury Stock (8000 shares at cost)
19 Total Stockholder's Equity
$16,000.00
$3,402,000.00
20
21
Instructions
Stockholder's Equity Section
Questions
100%
1:30 PM
P Type here to search
a
11/25/2020
12
4.
5.

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the price at which the stock of a public company trades on the stock market referred to as?
Do preferred stockholders receive the share of the company earnings before or after bond interest is paid?
Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown on the balance sheet?
Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if it is already issuing stock?
What is total for the shareholder's equity?
What do you mean by private placement of shares? What are the options for a company?
3. Why don't corporations pay dividends on shares of treasury stock?
How does shareholder value relate to capital structure?