Worldwide Company obtained a charter from the state in January that authorized 2

Question

Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,000 and the following selected transactions occurred in the order given:

Reacquired 1,800 shares at $15 cash per share from stockholders; the shares are now held in treasury.

Reissued 900 of the shares in transaction (b) two months later at $18 cash per share.

Indicating the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.)

Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,000 and the following selected transactions occurred in the order given:

Explanation / Answer

Assets = liabilties + Stokholders Equity a. cash 696000 Common stock 580000 Addittional paid in capital-CS 116000 b. Cash -27000 Treasury stock -27,000 c. cash 16200 Treasury stock 13500 Addittional paid in capital-TS 2700

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