Greeve Corporation Accounting
Not what you're looking for?
P12-2A Greeve Corporation had the following stockholders' equity accounts on January 1, 2006: Common Stock ($1 par) $400, 000, Paid-in Capital in Excess of Par Value $500, 000, and Retained Earnings $100, 000. In 2006, the company had the following treasury stock transactions. Mar. 1 Purchased 5, 000 shares at $7 per share. June 1 Sold 1, 000 shares at $10 per share. Sept. 1 Sold 2, 000 shares at $9 per share. Dec. 1 Sold 1, 000 shares at $5 per share. Greeve Corporation uses the cost method of accounting for treasury stock. In 2006, company reported net income of $60, 000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2006, for the net income. (b) Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. Post to these accounts using J12 as the posting references. (c) Prepare the stockholders' equity section for Greeve Corporation at December 31, 2006.
See attached file for full problem description.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer the request of the assignment in text file.
Solution Preview
(a)
Mar. 1 Treasury Stock 35,000
Cash 35,000
(5,000 x $7 = 35,000)
June 1 Cash 10,000
Treasury Stock 7,000
Paid-in Capital from Treasury Stock 3,000
(1,000 x $7 = 7,000)
Sept. 1 Cash 18,000
Treasury Stock 14,000
Paid-in Capital from Treasury Stock 4,000 ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Learning Lean
This quiz will help you understand the basic concepts of Lean.