ch15_sol

# Use the cost method aug 10 sold the 1800 treasury

• Notes
• 8
• 100% (12) 12 out of 12 people found this document helpful

This preview shows page 6 - 8 out of 8 pages.

(Use the cost method.) Aug 10 Sold the 1,800 treasury shares at \$14 per share. Dec 31 Declared a \$0.25 per share cash dividend on the common stock and declared the preferred dividend. Dec 31 Closed the Income Summary account. There was a \$175,700 net income. Instructions: Jan 11, 12 Account Title Amount Account Title Amount Account Title Amount Feb 1, 12 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Account Title Amount Jul 29, 12 Account Title Amount Account Title Amount Aug 10, 12 Account Title Amount Retained Earnings Amount Account Title Amount Dec 31, 12 Account Title Amount Account Title Amount Dec 31, 12 Account Title Amount Account Title Amount PHELPS CORPORATION Statement of Stockholders' Equity December 31, 2012 Capital Stock Enter text here. Amount Enter text here. Amount Total capital stock Formula Additional Paid-in Capital Text Title Amount Text Title Amount Formula Text Title Formula Text Title Amount Total stockholders’ equity Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse P15-1 (Equity Transactions and Statement Preparation) On January 5, 2012, Phelps Corporation (a) Record the journal entries for the transactions listed above. *(The debit is made to Retained Earnings because no Paid-in Capital * from Treasury Stock exists.) (b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2012.

Subscribe to view the full document.

b4e522ab9b94d1b1e1a5748e90c5a99c0ceb3f83.xlsx, Problem 15-5 Solution, Page 7 of 8, 03/29/2012, 01:32:33 Name: Solution Date: Instructor: Course: (par value of its stock is \$30.00 per share). Paid-in Capital in Excess of Par Common Stock Retained Earnings \$99,000 \$270,000 \$80,000 Instructions: 380 shares of treasury stock at \$40 per share. Treasury Stock (380 × \$40.00) 15,200 Cash 15,200 300 shares of treasury stock at \$45 per share. Treasury Stock (300 × \$45.00) 13,500 Cash 13,500 350 shares of treasury stock at \$42 per share. Cash (350 × \$42.00) 14,700 Treasury Stock (350 × \$40.00) 14,000 Paid-in Cap from T/S (350 × \$2.00) 700 110 shares of treasury stock at \$38 per share. Cash (110 × \$38.00) 4,180 Paid-in Cap from T/S (110 × \$110.00) 620 Treasury Stock (350 × \$40.00) 4,800 30 shares purchased at \$40.00 \$1,200 80 shares purchased at \$45.00 3,600 Cost of treasury shares sold using FIFO = \$4,800 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse P15-5 (Treasury Stock—Cost Method) Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (a) Bought (b) Bought (c) Sold (d) Sold
b4e522ab9b94d1b1e1a5748e90c5a99c0ceb3f83.xlsx, Problem 15-5, Page 8 of 8, 03/29/2012, 01:32:34 Name: Date: Instructor: Course: (par value of its stock is \$30.00 per share).
You've reached the end of this preview.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern