New Material Practice
The following is taken from Macon’s Equity Section of his 2006 Balance Sheet:
Common Stock ($3 par, 900,000 shares authorized,
500,000 issued, 350,000 outstanding)
Additional Paid In Capital, common stock
a.) What is the value of the common stock?
b.) For how much, on average, did Macon sell each share of common stock?
c.) How many shares are in the Treasury?
d.) For how much, on average, did Macon pay for each share of treasury stock?
e.) What is the total value of Macon’s Equity?
f.) If he declared a $3 per share common stock dividend, how much would he
Prepare the journal entries for the following transactions assuming he has $10,000 of
a.) Macon purchases 2,000 shares of his own $5 par stock for $30 each
b.) He sells 200 shares for $41 each, cash
c.) He sells 170 shares for $38 each, cash
d.) He sells 600 shares for $25 each, cash
e.) He sells 300 shares for $18 each, cash