C concluded commonstock

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Unformatted text preview: Treasury Stock (+SE) Reissued treasury stock. Common stock Additional paid­in capital (common and treasury stock) Retained earnings ($60,000 ­ $20,000 +$20,000) Total stockholders' equity b. $ 80,000 13,000 60,000 $153,000 A total of $3,000 of additional paid­in capital is attributable to treasury stock. This amount would be recorded in the account Additional Paid­In Capital, Treasury Stock. Under the cost method, this amount represents the amount of proceeds received in excess of the acquisition cost of the treasury stock reissued. E12–7 a. Treasury Stock (–SE) Purchased treasury stock. 2,850,000 Cash (–A) 2,850,000 E12–7 b. c. Concluded Common stock Additional paid­in capital, common stock Retained earnings ($4,500,000 +$350,000 ­ $50,000) Treasury stock Total stockholders' equity $ $ 100,000 2,400,000 4,800,000 (2,850,000) 4,450,000 When common stock is initially issued, it is recorded at the value of the assets received. In this case Stuart Corporation received $25 per share for 100,000 shares of common stock, for...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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