Betty DeRose, Inc. entered into the following transactions during 2006: a. Re-ac

ID: 2461231 • Letter: B

Question

Betty DeRose, Inc. entered into the following transactions during 2006:

a. Re-acquired 1,000 shares of its $8 par value common stock by paying $15 per share

b. Re-issued 300 of the shares that were re-acquired in (a) for $12 per share

c. Re-issued 200 of the shares that were re-acquired in (a) for $19 per share

d. Re-issued 300 of the shares that were re-acquired in (a) for $14 per share.

Calculate the balance in the paid-in capital - treasury account after all four transactions above are recorded.

Cash ............................15,000

2. Cash .......................3,600 (300 shares x $12)

Retained earnings ..........900

Treasury stock ..................4,500 (300 shares x $15 cost)

3. Cash .......................3,800 (200 shares x $19)

Paid-in capital - treasury ......800

Treasury stock ..................3,000 (200 shares x $15 cost)

4. Cash .......................4,200 (300 shares x $14)

Paid-in capital - treasury .300

Treasury stock ..................4,500 (300 shares x $15 cost)

Paid-in capital – treasury (transaction d) 300 (transaction c) 800 ending balance 500

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