finishing touches has two classes of stock authorized: 8%, $10 par preferred,and

Question

finishing touches has two classes of stock authorized: 8%, $10 par preferred,and $1 par value common. the following transactions affect stockholders’ equity during 2018 it’s first year of operations: January 2 Issues 100,000 shares of common stock for $28 per share February 6 Issues 2,300 shares of 8% preferred stock for $12 per share September 10 purchases 10,000 shares of its own common stock for $33 per share December 15 Reissues 5,000 shares of treasury stock at $38 per share In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,840 on all preferred shares outstanding. I NEED HELP FIGURING OUT THE ADDITIONAL PAID-IN CAPITAL AND TREASURY STOCK

Explanation / Answer

note:

treasury stock:

(10,000 purchased - 5,000 reissued) =>5,000 shares @$33 per share =>$165,000

additional paid in capital 2,729,600 treasury stock (165,000)

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