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Bramble Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings s110.000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 7,000 shares at 58 per share. June 1 Sold 1,000 shares at $13 per share Sept. 1 Sold 1.000 shares at $11 per share Dec 1 Sold 1.000 shares at 57 per share. Bramble Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $25.000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022. for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit >

Bramble Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($4 par) $440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings s110.000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 7,000 shares at 58 per share. June 1 Sold 1,000 shares at $13 per share Sept. 1 Sold 1.000 shares at $11 per share Dec 1 Sold 1.000 shares at 57 per share. Bramble Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $25.000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022. for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit >

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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(b) Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock Treasury Stock Retained Earnings eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (c) Prepare the stockholders' equity section for Bramble Corporation at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.) BRAMBLE CORPORATION Balance Sheet (Partial) >
Transcribed Image Text:(b) Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock Treasury Stock Retained Earnings eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (c) Prepare the stockholders' equity section for Bramble Corporation at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.) BRAMBLE CORPORATION Balance Sheet (Partial) >
Bramble Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock (54 par) 5440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 7,000 shares at $8 per share. June 1 Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. Sold 1,000 shares at $7 per share. Bramble Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $25,000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit >
Transcribed Image Text:Bramble Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock (54 par) 5440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 7,000 shares at $8 per share. June 1 Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. Sold 1,000 shares at $7 per share. Bramble Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $25,000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit >
Expert Solution
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Treasury stock refers to such shares which were previously outstanding which have been bought back from stakeholders/shareholders by the company.

As a result, the total shares outstanding of the company decreases.

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