Finishing Touches has two classes of stock authorized: 7%, $10 par preferred, an

Question

Finishing Touches has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: January 2 Issues 100,000 shares of common stock for $15 per share. February 6 Issues 1,000 shares of 7% preferred stock for $13 per share. September 10 Repurchases 12,000 shares of its own common stock for $20 per share. December 15 Reissues 6,000 shares of treasury stock at $25 per share. In its first year of operations, Finishing Touches has net income of $140,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $700 on all preferred shares outstanding. I NEED TO KNOW THE ADDITIONAL PAID-IN CAPITAL AND THE TREASURY STOCK PLEASE!!

Explanation / Answer

Common stock - par common stock - addi paid in capital Pref. stock - par Pref. stock - addi paid in capital Treasury stock Treasury stock- addi paid in capital Jan 2 100000 1400000 Feb 6 10000 3000 sept 10 240000 Dec 15 120000 30000 Total of Additional Paid in capital 1400000 3000 30000 Balance of Treasury Stock 120000

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