The data below are from the December 31, 2010, balance sheet of the Hani Corner

Question

The data below are from the December 31, 2010, balance sheet of the Hani Corner Corporation:

Common stock, $50 par, 3,000 shares issued and
outstanding .........................................
$150,000
Paid-in capital in excess of par ...................... 45,000
Retained earnings ..................................... 75,000

Record the following transaction during 2011:

Oct. 23 Purchased 225 shares of stock at $71 per share and
immediately retired the stock. The shares originally sold for $65 per share.

Explanation / Answer

Oct 23 Treasury stock                     (225*71) $15975       cash                                                                   $15975 cash                                          (225*65)$14625 paid in capital from sale                           $1350      Treasury stock                                                       $15975

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