The following information applies to the questions displayed below.] The followi
ID: 2468248 • Letter: T
Question
The following information applies to the questions displayed below.] The following information pertains to Kwon Corp. at January 1, 2010. Common stock, $10 par, 50,000 shares authorized, 2,000 shares issued and outstanding $ 20,000 Paid-in capital in excess of par, common stock 15,000 Retained earnings 65,000 Kwon Corp. completed the following transactions during 2010: 1. Issued 2,000 shares of $10 par common stock for $25 per share. 2. Repurchased 200 shares of its own common stock for $22 per share. 3. Resold 50 shares of treasury stock for $26 per share. 1.value: 1.00 pointsRequired information Required: (a) How many shares of common stock were outstanding at the end of the period? Outstanding at the end of the period 3850 ReferenceseBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5 Check my work 2.value: 1.00 pointsRequired information (b) How many shares of common stock had been issued at the end of the period? Issued at the end of the period 4000 ReferenceseBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5 Check my work 3.value: 1.00 pointsRequired information (c) Organize the transactions data in accounts under the accounting equation. (Amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Kwon Corporation Accounting Equation Event Assets = Stockholders' Equity Cash = Comm Stock + PIC in Excess CS + PIC in Excess TS - Treasury Stock 1. 0 0 2. 0 0 0 3. 0 0 Bal. ReferenceseBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5 Check my work 4.value: 1.00 pointsRequired information (d) Prepare the stockholders' equity section of the balance sheet reflecting these transactions. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response) Stockholders' Equity $ Total Paid-In Capital $ Total Stockholders' equity $
Explanation / Answer
a. Number of shares of common stock outstanding at the end of the period = 2,000 ( Beginning balance) + 2,000 (Issuance during the period) - 200 ( Treasury stock purchased) + 50 ( Treasury stock reissued) = 3,850
b. Number of shares of common stock issued as at the end of the period = 2,000 ( Beginning balance) + 2,000 ( Fresh issuance during the period) = 4,000
c. Accounting equation: Assets = Stockholders' equity
d. Stockholders' Equity section of balance sheet:
Assets = Stockholders' Equity Cash Common stock PIC in excess of CS PIC in excess TS -Treasury Stock 1. $50,000 $20,000 $30,000 2. -4,400 -4,400 3. 1,300 200 1,100 Total $46,900 $ 20,000 $ 30,000 200 -3,300Related Questions
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