At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock

Question

At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock of $2,000 and retained earnings of $49,000 Betty DeRose, Inc. entered into the following transactions during 2020: a. Re-acquired 5,000 shares of its $8 par value common stock by paying $18 per share. b. Re-issued 900 of the shares that were re-acquired in (a) for $20 per share. c. Re-issued 1,200 of the shares that were re-acquired in (a) for $14 per share. d. Re-issued 800 of the shares that were re-acquired in (a) for $21 per share. e. Re-issued 1,100 of the shares that were re-acquired in (a) for $17 per share. Calculate the balance in the paid-in capital - treasury stock account after all five transactions above are recorded. Do not use decimals in your answer.

Explanation / Answer

2000*

800

* assumed acquired at par $2000/8 = 250 shares

balance of retained earnings

50000

4300

(200)

balance of paid in capital particulars no of shares amount opening balance 250

2000*

purchased 5000 90000 sold 900 (18000) sold 1200 (16800) sold

800

(16800) sold 1100 (18700) balance 1250 21700

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