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    Proper disclosures in the stockholders' equity section

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    Treasury Stock
    The stockholders' equity section of Seely Co.'s balance sheet at December 31, 2003, was as follows:

    Common stock--$10 par (authorized 1,000,000 shares,
    issued and outstanding 600,000 shares) $6,000,000
    Paid-in capital in excess of par 1,500,000
    Retained earnings 3,250,000
    $10,750,000

    Instructions
    Prepare journal entries to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (Show computations.)

    10 On January 4, 2004, having idle cash, Seely Co. repurchased 25,000 shares of its out-standing stock for $450,000.

    11 On March 4, Seely sold 5,000 of these reacquired shares at $22 per share.

    12 Show the proper disclosures in the stockholders' equity section of the balance sheet issued at the end of the first quarter, March 31, 2004.
    Assume net income of $100,000 during the first quarter.

    13 On June 30, 2004 the firm sold 15,000 of the reacquired shares for $16 per share.
    (See attached file for full problem description)

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    Treasury Stock
    The stockholders' equity section of Seely Co.'s balance sheet at December 31, 2003, was as follows:

    Common stock--$10 par (authorized 1,000,000 shares,
    issued and outstanding 600,000 shares) $6,000,000
    Paid-in capital in excess of ...

    Solution Summary

    This explain aouut the proper disclosures in the stockholders' equity section of the balance sheet

    $2.19

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