Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: value, authorized 50,000 shares; issued and Ordinary Share capital, USD20 par USD600,000 outstanding 30,000 shares Ordinary Share premium Retained earnings USD150,000 USD230,000 In addition, during the year, these transactions happened: 2,500 shares were repurchased as treasury shares at a price of USD28 per share. 500 treasury shares were sold at a price of USD32 per share. 700 shares of treasury shares were sold at a price of USD24 per share. Sizzle Company reported a net income of USD120,000 for the current year. а. b. с. d. Please calculate the a) balance of the treasury shares account and the b) balance of Share Premium – Treasury Shares account of Sizzle Company after recording all these transactions. Show complete solution and explanation.
Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: value, authorized 50,000 shares; issued and Ordinary Share capital, USD20 par USD600,000 outstanding 30,000 shares Ordinary Share premium Retained earnings USD150,000 USD230,000 In addition, during the year, these transactions happened: 2,500 shares were repurchased as treasury shares at a price of USD28 per share. 500 treasury shares were sold at a price of USD32 per share. 700 shares of treasury shares were sold at a price of USD24 per share. Sizzle Company reported a net income of USD120,000 for the current year. а. b. с. d. Please calculate the a) balance of the treasury shares account and the b) balance of Share Premium – Treasury Shares account of Sizzle Company after recording all these transactions. Show complete solution and explanation.
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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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