Calculation of Treasury Stock Transactions
Not what you're looking for?
Andruw Jones Comapny had the following stockholders equity as of January 1, 2008.
Common Stock, $5 par value, 20000 shares issued $100,000
Paid-in-Capital in excess of par 300,000
Retained earnings 320,000
Total Stockholders equity 720,000
During 2008, the following transactions occurred:
Feb. 1 Jones repurchased 2000 shares of treasury stock at a price of $18 per share.
Mar 1 800 shares of treasury stock repurchased above were reissued at $17 per share
Mar 18 500 shares of treasury stock repurchased above were reissued at $14 per share
Apr 22 600 shares of treasury stock repurchased above were reissued at $20 per share.
(a) Prepare the journal entries to record the treasury stock transactions in 2008, assuming Jones uses the cost method.
(b) Prepare the stockholders' equity section as of April 30, 2008. Net income for the first 4 months of 2008 was $110,000.
Purchase this Solution
Solution Summary
Andruw Jones Comapny had the following stockholders equity as of January 1, 2008.
Common Stock, $5 par value, 20000 shares issued $100,000
Paid-in-Capital in excess of par 300,000
Retained earnings 320,000
Total Stockholders equity 720,000
During 2008, the following transactions occurred:
Feb. 1 Jones repurchased 2000 shares of treasury stock at a price of $18 per share.
Mar 1 800 shares of treasury stock repurchased above were reissued at $17 per share
Mar 18 500 shares of treasury stock repurchased above were reissued at $14 per share
Apr 22 600 shares of treasury stock repurchased above were reissued at $20 per share.
(a) Prepare the journal entries to record the treasury stock transactions in 2008, assuming Jones uses the cost method.
(b) Prepare the stockholders' equity section as of April 30, 2008. Net income for the first 4 months of 2008 was $110,000.
Solution Preview
For your review, I have attached a formatted MS Excel spreadsheet containing ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Lean your Process
This quiz will help you understand the basic concepts of Lean.