21 Betty DeRose, Inc. entered into the following transactions during 2006: a. Re

ID: 2459870 • Letter: 2

Question

Betty DeRose, Inc. entered into the following transactions during 2006:

a. Re-acquired 1,000 shares of its $8 par value common stock by paying $15 per share

b. Re-issued 300 of the shares that were re-acquired in (a) for $12 per share

c. Re-issued 200 of the shares that were re-acquired in (a) for $19 per share

d. Re-issued 300 of the shares that were re-acquired in (a) for $14 per share

Calculate the balance in the paid-in capital - treasury account after all four transactions above are recorded. Do not use decimals in your answer.

a. Re-acquired 1,000 shares of its $8 par value common stock by paying $15 per share

(1,000 x $15)

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b. Re-issued 300 of the shares that were re-acquired in (a) for $12 per share

Dr Cash $3,600

Dr Retained earnigs $ 900

Cr Treasury Stock $4,500

(300 x 15)

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c.Re-issued 200 of the shares that were re-acquired in (a) for $19 per share

Dr Cash $3,800

Cr paid-in Capital –Treasury $800

Cr Treasury Stock $3,000

(200 x 15)

d. Re-issued 300 of the shares that were re-acquired in (a) for $14 per share Dr Cash $4,200

Dr paid-in Capital –Treasury $300

Cr Treasury Stock $ 4,500

(300 x 15)

Paid In capital Treasury :

Re issue @ excess to Par (4 x 200) 800

Les Reissue @ discount (1 x 300) (300)

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500

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