Chapter 10, Problem 10.44BE

(Learning Objectives 3, 6: Show how treasury stock affects a company; prepare the stockholders’ equity section of a balance sheet) Beluga Software had the following selected account balances at December 31, 2018 (all numbers and amounts are in thousands, except par value per share):

Inventory……………	$654
Property, plant, and equipment, net……………	900
Paid- in capital in excess of par………	901
Treasury stock, 160 shares at cost………………	2,560
Accumulated other comprehensive income (loss)……	(727)*
Common stock, $1.50 par per share, 1, 100 shares authorized, 360 shares issued………………………	$540
Retained earnings…………………	2,220
Accounts receivable, net………	200
Notes payable…………	1,274

^*Debit balance

Requirements

1. Prepare the stockholders’ equity section of Beluga Software’s balance sheet (in thousands).

2. How can Beluga have a larger balance of treasury stock than the sum of Common Stock and Paid-in Capital in Excess of Par?