The actual purchase of the treasury stock reduced

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Unformatted text preview: per share. P12–12 Concluded (7 ) Cash (+A) Capital, Treasury Stock (+SE) Reissued treasury stock. 80,000 Treasury Stock (+SE) 66,640* Additional Paid­In 13,360 * $66,640 = 8,000 shares Adjusted acquisition price of $8.33 per share (8 ) Cash Dividend (–SE) 50,000 Dividend Payable (+L) 50,000 Declared a cash dividend. (9 ) Dividend Payable (–L) 50,000 Cash (–A) 50,000 Paid cash dividend. (1 0 ) Cash (+A) Capital, Treasury Stock (+SE) Reissued treasury stock. 30,000 Treasury Stock (+SE) 16,660* Additional Paid­In 13,340 * $16,660 = 2,000 shares Adjusted acquisition price of $8.33 per share b. Common stock ($2 par value, 1,000,000 shares authorized, 345,000 shares issued, and 20,000 shares held in treasury) Additional paid­in capital: Common stock Treasury stock Retained earnings Treasury stock Total stockholders' equity a $480,000 b $166,700 $690,000 $ 1,470,000 36,700 480,000a (166,700)b 2,510,000 = Cumulative net income – Cumulative declared dividends = ($400,000 + $100,000 + $...
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