Exercise 8-9 Recording and reporting treasury stock transactions LO 8-5 [The fol

Question

Exercise 8-9 Recording and reporting treasury stock transactions LO 8-5

[The following information applies to the questions displayed below.]

  

The following information pertains to Wise Corp. at January 1, 2014:

  

  Common stock, $11 par, 10,000 shares authorized,
      2,000 shares issued and outstanding $22,000
  Paid-in capital in excess of par, common stock 14,300
  Retained earnings 53,200

  

Wise Corp. completed the following transactions during 2014:

  

1. Issued 1,100 shares of $11 par common stock for $26 per share.
2. Repurchased 210 shares of its own common stock for $23 per share.
3. Resold 50 shares of treasury stock for $24 per share.

References
Section BreakExercise 8-9 Recording and reporting treasury stock transactions LO 8-5
1.
value:
0.25 points
Required information

Exercise 8-9 Part a

Required

a. How many shares of common stock were outstanding at the end of the period?

      
References
eBook & Resources
WorksheetDifficulty: 3 Hard
Exercise 8-9 Part aLearning Objective: 08-05 Show how treasury stock transactions affect a company’s financial statements.
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2.
value:
0.25 points
Required information

Exercise 8-9 Part b

b. How many shares of common stock had been issued at the end of the period?

      
References
eBook & Resources
WorksheetDifficulty: 3 Hard
Exercise 8-9 Part bLearning Objective: 08-05 Show how treasury stock transactions affect a company’s financial statements.
Check my work

3.
value:
0.25 points
Required information

Exercise 8-9 Part c

c.

Organize the transactions data in accounts under the accounting equation. (Enter any decreases to account balances with a minus sign.)

       

References
eBook & Resources
WorksheetDifficulty: 3 Hard
Exercise 8-9 Part cLearning Objective: 08-05 Show how treasury stock transactions affect a company’s financial statements.
Check my work

4.
value:
0.25 points
Required information

Exercise 8-9 Part d

d.

Prepare the stockholders’ equity section of the balance sheet reflecting these transactions. Include the number of shares authorized, issued, and outstanding in the description of the common stock.

      

Explanation / Answer

Answer a

Share Outstanding at the end of period =>2000 + 1100 - 210 + 50 => 2940 Shares

Answer b

Shares of common stock issued at the end of the period => 2000 +1100 => 3100 shares

Answer c

Assets = Liabilities

$114470 =$114470

Transactions Cash = Common Stock+ Excess paid in capital+ Retained earnings+ Treasury Stock Begginig +89500= 22000+ 14300+ 53200+ - (1) +28600= 12100+ 16500+ - - (2) - 4830 = -2310 -2520 - (3) +1200 = - +50 - +1150 TOTAL 114470= 31790+ 28330+ 53200+ +1150

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