Consequently the company will need at least 6000050 in

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Unformatted text preview: hares reissued = Change in treasury stock balance ÷ $70 per share = ($105,000 – $84,000) ÷ $70 per share = 300 shares P12–12 a. (1 ) 750,000 C o mmo n 300,000 Additional 450,000 Issued common stock. Stock (+SE) Paid­in Capital, Common Stock (+SE) (2 ) Cash (+A) Stock Dividend (–SE) Capital, Common Stock (+SE) Declared and issued 10% stock dividend. 90,000* Common Stock (+SE) 30,000 Additional Paid­in 60,000 * $90,000 = 50,000 shares outstanding 10% $18 per share (3 ) Cash (+A) Capital, Common Stock (+SE) 1,320,000 Common Stock (+SE) 360,000 Additional Paid­in 960,000 Issued common stock. (4 ) Treasury Stock (–SE) 375,000 Cash (–A) 375,000 Purchased treasury stock. (5 ) Cash (+A) 135,000 Treasury Stock (+SE) 125,000 Additional Paid­in 10,000 Capital, Treasury Stock (+SE) Reissued treasury stock. (6 ) The company should make a memorandum entry stating that par value is now $2 per share and the total number of shares issued is now 345,000 shares, of which 315,000 shares are outstanding and 30,000 shares are held in treasury at an adjusted cost of $8.33...
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