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# Filling in Stockholders' Equity Information

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The market price of a share of common stock at the time of issuance was \$19.50, while the market price of a preferred share of stock at the time of issuance was \$32. The company paid \$12.50 for its treasury stock. Fill in the missing stockholders' equity information below.

Stockholders' equity:
Preferred stock, \$2.00 par value, 1,000,000 authorize; 300,000 issued ............ (a)
Common stock, \$3.00 par value, 40,000,000 authorized; 25,600,000 issued   (C )
Retaining earnings......................................................305,683,000.........(e)
Less: treasury stock, at cost (10,000 shares)....................................... (f)
Total Stockholders' equity.............................................................(g)

#### Solution Summary

Your solution shows instructional notes to indicate how each amount is found and is attached as an Excel document.

\$2.19

## Important information about Stockholders equity

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, the company reported net income of \$60,000.

Instructions
(a) Journalize the treasury stock transactions,

and prepare the closing entry at December 31,
2006, for 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 reference.

(c) Prepare the stockholders' equity section for Greeve Corporation at December 31, 2006.

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