The following information pertains to JAE Corporation at January 1, Year 2: Common stock, $11 par, 9,000 shares authorized, 1,800 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings JAE Corporation completed the following transactions during Year 2: 1. Issued 1,150 shares of $11 par common stock for $30 per share. 2. Repurchased 170 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 per share. Required a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? $ 19,800 17,400 71,200 c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions.
The following information pertains to JAE Corporation at January 1, Year 2: Common stock, $11 par, 9,000 shares authorized, 1,800 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings JAE Corporation completed the following transactions during Year 2: 1. Issued 1,150 shares of $11 par common stock for $30 per share. 2. Repurchased 170 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 per share. Required a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? $ 19,800 17,400 71,200 c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information pertains to JAE Corporation at January 1, Year 2:
Common stock, $11 par, 9,000 shares authorized, 1,800 shares
issued and outstanding
Paid-in capital in excess of par, common stock
Retained earnings
JAE Corporation completed the following transactions during Year 2:
1. Issued 1,150 shares of $11 par common stock for $30 per share.
2. Repurchased 170 shares of its own common stock for $27 per share.
3. Resold 50 shares of treasury stock for $28 per share.
Required
a. How many shares of common stock were outstanding at the end of the period?
b. How many shares of common stock had been issued at the end of the period?
c. Organize the transactions data in accounts under the accounting equation.
d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions.
Show Transcribed Text
Req A and B
Req C
Req D
3
$ 19,800
17,400
71,200
Ĉ
How many shares of common stock were outstanding and issued at the end of the period?
a. Outstanding shares at the end of the period
b. Issued shares at the end of the period
Transcribed Image Text:Req A and B
Event
Organize the transactions data in accounts under the accounting equation.
Note: Enter any decreases to account balances with a minus sign.
Beginning balance
1.
2.
3.
Req C
Ending balance
Assets
Req A and B
Cash
Show Transcribed Text
Req D
Stockholders' Equity
Total paid-in capital
=
=
Req C
JAE CORPORATION
Accounting Equation for the Year 2
Liabilities + Common
Stock
Total stockholders' equity
+
+
3
Req D
Stockholders' Equity
Paid-in Capital
In Excess
Treasury Stock
Paid-in Capital
In Excess
Common Stock
+
+
+
+
+
Treasury Retained
Stock Earnings
+
+
+
+
Prepare the stockholders' equity section of the balance sheet reflecting these trar
JAE CORPORATION
Balance Sheet (Partial)
As of December 31, Year 2
+
+
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Step 1: Introduction of stockholder's equity
VIEWStep 2: Requirement a - Computation of the common stock outstanding at the end of the period
VIEWStep 3: Requirement b - Computation of the common stock issued at the end of the period
VIEWStep 4: Requirement c - Organizing the transaction data
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