Treasury Stock Coastal Corporation issued 35,000 shares of $5 par value common stock at $34 per share and 8,400 shares of $50 par value, eight percent preferred stock at $156 per share. Later, the company purchased 4,200 shares of its own common stock at $40 per share. a. Determine the financial statement effect of the share issuances and the purchase of its own common shares. Balance Sheet Income Statement Assets = Liabilities + Equity Revenues - Expenses = Net Income Answer Answer Answer Answer Answer Answer b. Assume that Coastal sold 2,800 shares of the treasury stock at $52 per share. Determine the financial statement effect of the sale of the treasury stock. Balance Sheet Income Statement Assets = Liabilities + Equity Revenues - Expenses = Net Income Answer Answer Answer Answer Answer Answer c. Assume that Coastal sold the remaining 1,400 shares of treasury stock at $38 per share. Determine the financial statement effect of the sale of the treasury stock. Balance Sheet Income Statement Assets = Liabilities + Equity Revenues - Expenses = Net Income Answer Answer Answer Answer Answer Answer

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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Treasury Stock

Coastal Corporation issued 35,000 shares of $5 par value common stock at $34 per share and
8,400 shares of $50 par value, eight percent preferred stock at $156 per share.

Later, the company purchased 4,200 shares of its own common stock at $40 per share.

a. Determine the financial statement effect of the share issuances and the purchase of its own common shares.

Balance Sheet								Income Statement
Assets	=	Liabilities	+	Equity				Revenues	-	Expenses	=	Net Income
Answer		Answer		Answer				Answer		Answer		Answer

b. Assume that Coastal sold 2,800 shares of the treasury stock at $52 per share.
Determine the financial statement effect of the sale of the treasury stock.

Balance Sheet								Income Statement
Assets	=	Liabilities	+	Equity				Revenues	-	Expenses	=	Net Income
Answer		Answer		Answer				Answer		Answer		Answer

c. Assume that Coastal sold the remaining 1,400 shares of treasury stock at $38 per share.
Determine the financial statement effect of the sale of the treasury stock.

Balance Sheet								Income Statement
Assets	=	Liabilities	+	Equity				Revenues	-	Expenses	=	Net Income
Answer		Answer		Answer				Answer		Answer		Answer

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