Underwood Company's only treasury stock transactions for the current year follow: (1) 2,000 shares of its common stock were purchased on June 1 for $80,000; (2) On July 1 it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued an additional 500 treasury shares at $38 per share.   Prepare the journal entries required to record these transactions. Calculate the balance in Paid-in Capital, Treasury Stock, on September 1 assuming its beginning-year balance is zero.

Q: On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 1,000,000 shares of no-par…

A: Given, 1,000,000 common shares (stated value of $0.25) issued at $1.20 10,000 preferred shares (par…

Q: Instructions: prepare the journal entries on above transactions.

A: Calculation of Dividend Paid :- Shares outstanding at the beginning 60000 Add : New issue…

Q: On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November…

A: sometime companies purchase share of their own stock from other stock holder of the company. such…

Q: Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100…

A: The entry for preferred stock issued   Date Particular Debit ($) Credit ($) Dec 31 Cash 20,000…

Q: Splish Brothers Inc. purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

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A: Working notes:  Jan 10 = 80,800 shares * $6 per share. = $484800  Jan 10 = 80,800 shares * $4 per…

Q: Howard Corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A: During the year number of shares outstanding are not same. Due to purchase or sale of shares. To…

Q: On March 1, the company issued 50,000 preferred shares with a 5% cumulative dividend for $10 per…

A: Preference shares are those who are given preference over the equity holders while at the payment of…

Q: During this year, board of directors at Munoz Company authorizes repurchase of 100 shares of the…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All…

A: A treasury stock means a reacquired stock which is repurchased by the organization or company,…

Q: The following accounts appear in the ledger of Alico Corporation after the books are closed at…

A: Stockholders’ equity: It refers to the residual amount of assets that are available to the company’s…

Q: Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock…

A: Purchase price of each share = $275,600/5300                                                = $ 52

Q: On January 1, Riverbed Corp had 62,300 shares of no-par common stock issued and outstanding. The…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: night Corp. holds 20,000 shares of its $10 par common stock as treasury stock reacquired in Year1…

A: Treasury stock is that part of the common stock of the company that is re-purchased by the issuing…

Q: The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30…

A: Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the…

Q: During its first year of operations, Collin Raye Corporation had the following transactions…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November…

A:

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Answer 1) Account Titles and Explanation  Debit  Credit Dividends  $      1,20,000…

Q: On May 3, Zirbal Corporation purchased 5,000 shares of its own stock for $45,000 cash. On November…

A:

Q: Howard corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A: Weighted average number of shares is the total number of outstanding shares calculated at the end of…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Debit Credit   Dividends declared $         160,000     Dividends Payable   $      160,000…

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A: We have the following information: On January 1, Sweeney Corporation had 40,000 shares of $10 par…

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A: Journal entry is a record of financial transaction in the books of accounts prepared using the three…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid…

A: 1.

Q: During its first year of operations, Harlan Corporation had the following transactions pertaining to…

A: A par value stock is a type of common or preferred stock having a nominal amount (known as par…

Q: On June 10, Starbar Corp. repurchased 1,000 shares of its outstanding common stock for $10 per…

A: Treasury stock often referred to as treasury shares, is previously outstanding shares which the…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Dividend: It is the distribution of profit earned by a company its common stock shareholders. In…

Q: Elroy Corporation repurchased 2,500 shares of its own stock for $35 per share. The stock has a par…

A: Treasury shares are those shares which are being repurchased by the company from its own…

Q: Monty Inc. has 5,400,000 shares of common stock issued and outstanding. On April 1, the board of…

A:

Q: AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company…

A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…

Q: At the start of 20X5, Happy Corp. had 20,000 shares of $5 par common stock issued and outstanding.…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and…

A: On february 1,vermont purchased treasury stock for $ 24 and on march 1 it sold treasury stock for…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

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Q: During its first year of operations, Flounder Corporation had the following transactions pertaining…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: During its first year of operations, Flounder Corporation had the following transactions pertaining…

A: Journal entries are used to record the transactions of business in a chronological order.

Q: On January 1, Vermont Corporation had 46,400 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

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A: Under the cost method, the treasury stock is recorded at the repurchased cost. When treasury stock…

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A: Authorized share capital means the share capital which is the company is legally authorized to…

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A: The formula to calculate the current ratio is (Current Assets/Current Liabilities) Stock split is a…

Q: The following accounts appear in the ledger of AlicoCorporation after the books are closed at…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: When Bunyan Corporation was formed on January 1, the corporate charter provided for 90,000 shares of…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

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A: Formulas: Weighted average number of shares = Actual shares out standing * Fraction of year…

Q: Darren Company had 600,000 ordinary shares outstanding on January 1, issued 120,000 shares on May 1,…

A: Weighted average number of shares outstanding is the sum of all outstanding shares multiplied by the…

Q: LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common…

A: Additional Paid in Capital from Treasury stock represents the excess amount over its cost generated…

Q: The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30…

A: Common stock (shares)=$706,500$15=47,100 shares

Q: ortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…

A: When shares of the company are issued at a value more than par value, then it means shares are…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.