At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock

Question

 At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock of $2,000 and retained earnings of $49,000.  Betty DeRose, Inc. entered into the following transactions during 2020:  a.  Re-acquired 5,000 shares of its $8 par value common stock by paying $18     per share.  b.  Re-issued 900 of the shares that were re-acquired in (a) for $20 per     share.  c.  Re-issued 1,200 of the shares that were re-acquired in (a) for $14 per     share.  d.  Re-issued 800 of the shares that were re-acquired in (a) for $21 per     share.  e.  Re-issued 1,100 of the shares that were re-acquired in (a) for $17 per     share. 

 Calculate the balance in the paid-in capital - treasury stock account after all five transactions above are recorded. Do not use decimals in your answer. 

Explanation / Answer

Beginning balance 2000 Transaction 1 - Transaction- 2 Reissue   900[20 issue price-18cost ] 1800 Available balance in PIC-treasury stock 3800 Transaction3 1200 [14-18 cost]=4800**restricted to available balance of 3800 and remaining $1000 [4800-3800] will be setoff from retained earning -3800 Available balance 0 Transaction 4 800[21-18] 2400 Available balance 2400 Transsaction 5 1100[17-18] -1100 Available balance 1300 balance in the paid-in capital - treasury stock account : $1300

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