Frontier Amusements Corporation had the following stockholders\' equity on Novem
ID: 2453311 • Letter: F
Question
Frontier Amusements Corporation had the following stockholders' equity on November 30: On December 30, Frontier purchased 225 shares of treasury stock at $10 per share. Requirements Journalize the purchase of the treasury stock. Prepare the stockholders' equity section of the balance sheet at December 31. How many shares of common stock are outstanding after the purchase of treasury stock? Requirement 3. How many shares of common stock are outstanding after the purchase of treasury stock? shares are outstanding.Explanation / Answer
1) Treasury Stock Debit $ 2250
Cash credit $ 2250
2) Paid in Capital
Common stock, $5 par, 1300 Shares Authorozed
950 Shares Issued $ 4750
Paid in capital in excess of par-common $ 14250
Total Paid in capital $ 19000
Retained earnings $ 54000
Less: Treasury Stock (225 shares @ $10per share) $ 2250
Total Equityholders's equity $ 70750
3) Common Stock outstanding = 950 shares - 225 shares
= 725 shares
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