The following information pertains to JAE Corp. at January 1, 2018: Common stock
ID: 2572939 • Letter: T
Question
The following information pertains to JAE Corp. at January 1, 2018: Common stock, $10 par, 11,000 shares authorized, 2,200 shares issued and outstanding $ 22,000 Paid-in capital in excess of par, common stock 17,700 Retained earnings 68,300 JAE Corp. completed the following transactions during 2018: Issued 1,100 shares of $10 par common stock for $29 per share. Repurchased 190 shares of its own common stock for $26 per share. Resold 50 shares of treasury stock for $27 per share. Required: How many shares of common stock were outstanding at the end of the period? How many shares of common stock had been issued at the end of the period? Organize the transactions data in accounts under the accounting equation. Prepare the stockholders’ equity section of the balance sheet reflecting these transactions. Include the number of shares authorized, issued, and outstanding in the description of the common stock.
Explanation / Answer
How many shares of common stock were outstanding at the end of the period?
2200 + 1100 -190 + 50 = 3160 Shares
How many shares of common stock had been issued at the end of the period?
New issued common shares = 1100
Prepare the stockholders’ equity section of the balance sheet
Stock holder's equity
Common stock, $10 par, 11,000 shares authorized, 3,300 shares issued and 3160 shares outstanding 33000 Paid in capital in excess of par - Common (17700 + 1100 * 19) 38600 Paid in capital from treasury stock (50 shares * $1) 50 Retained earning 68300 Sub total 139950 Less: Treasury stock at cost (140 Shares * $26) -3640 Total Stock holder's Capital 136310Related Questions
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