Stockholders\' Equity Paid-In Capital: Common Stock—$5 Par Value; 1,300 shares a
ID: 2412446 • Letter: S
Question
Stockholders' Equity
Paid-In Capital:
Common Stock—$5 Par Value; 1,300 shares
authorized, 310 shares issued and outstanding $1,550
Paid-In Capital in Excess of Par—Common 4,650
Total Paid-In Capital 6,200
Retained Earnings 59,000
Total Stockholders' Equity $65,200
DATA TABLE ABOVE
Western Amusements Corporation had the following? stockholders' equity on November 30?:
On December? 30, Western purchased 100 shares of treasury stock at $ 14 per share.
Requirement 1. Journalize the purchase of the treasury stock.? (Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Date Accounts and Explanation Debit Credit Dec. 30
Requirement 2. Prepare the? stockholders' equity section of the balance sheet at December? 31, 2018. Assume the balance in retained earnings is unchanged from November 30. Western Amusements Corporation Balance Sheet (Partial) December 31 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity
Requirement 3. How many shares of common stock are outstanding after the purchase of treasury? stock?
_______shares are outstanding.
Explanation / Answer
Answer
Date
Accounts title
Debit
Credit
Dec-30
Treasury Stock [100 shares x $ 14]
$ 1,400.00
Cash
$ 1,400.00
(treasury stock acquired at $14 per share0
Partial Balance Sheet – 31 Dec
Stockholders’ Equity
Paid in Capital:
Common Stock
$ 1,550.00
Paid in Capital in Excess of Par Common Stock
$ 4,650.00
Total Paid In capital
$ 6,200.00
Retained earnings
$ 59,000.00
$ 65,200.00
Less: Treasury Stock
$ 1,400.00
Total Stockholder's Equity
$ 63,800.00
Shares outstanding prior to treasury stock
310
Treasury Stock acquired
-100
No. of shares outstanding after the purchase of Treasury Stock
210
Answer: 210 shares outstanding.
Date
Accounts title
Debit
Credit
Dec-30
Treasury Stock [100 shares x $ 14]
$ 1,400.00
Cash
$ 1,400.00
(treasury stock acquired at $14 per share0
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