Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the following transactions during the current year: a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14. b. Sold 2,000 treasury shares to employees for $6 per share on January 31. c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24. d. Sold the remaining 11,000 shares from the January 14 purchase and 1,200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1. Required: 1. Prepare journal entries for each of these transactions. 2. Determine what the effect on total stockholders’ equity is for each of the four transactions.

Q: Ahnberg corporation had 760,000 shares of common stock and issued and outstanding at january 1. no…

A: Earnings per share (EPS):   The amount of net income available to each shareholder per common share…

Q: occurred during 20x3: a. Issued 180,000 shares to key employees as compensation for their past…

A: The number of a company's stock that is currently held by all of its shareholders, including…

Q: Elroy Corporation repurchased 3,600 shares of its own stock for $30 per share. The stock has a par…

A: Total amount of Treasury stock purchased = No. of stock Purchased * Amount per stock = 3600*$30 =…

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

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

Q: Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in…

A: Prepare journal entries:

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Ordinary shares or common shares are stocks sold on a public exchange by a company. It gives the…

Q: Oriole Company had the following transactions during the current period. Mar. 2   Issued 4,200…

A: Journal entry is an activity of record keeping of economic or non- economic transactions in thr…

Q: Lucky Corporation began the year with a simple capital structure consisting of $240,000 shares of…

A: Formula: Earnings per share = Net Income / outstanding Weighted average common shares Division of…

Q: During the year, BFAR Corp. completed the following transactions related to its treasury shares:…

A: Share premium includes the amount which is computed if the shares are purchased or sold at the…

Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…

A: Shareholders equity is the amount that the owner has invested in the business including retained…

Q: Tamarisk, Inc. had the following transactions during the current period. Issued 4,900 shares of $5…

A: Treasury Stock:  Treasury Stock is the term that is used to describe shares of a company’s own stock…

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: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…

Q: During its first year of operations, the McCollum Corporation entered into the following…

A: Journal entry for issue of shares:

Q: Sheffield Corp.'s balance sheet reported the following: Capital stock outstanding, 4,000 shares,…

A: Treasury stock is the amount or value of stock that is being reacquired or repurchased from the…

Q: OSE Corporation's articles of incorporation provides for the issuance of 100,000 ordinary shares.…

A: The dividend is the distribution of the portion of profit earned by the company. The dividend is…

Q: DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year…

A: Earning Per Share (EPS) represents the net income that each common shareholder is earning from the…

Q: On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of…

A: Under cost method, Investment is recorded  along inclusive of any expenses incurred to acquire.…

Q: During the year, the following selected transactions affecting stockholders' equity occurred for…

A: Answer -    Working Note : a. Treasury stock (100 shares × $20) = $2,000   b. Cash (60 shares × $21…

Q: On December 31, 20x2, Preacher, Inc. had 500,000 ordinary shares outstanding. The following…

A: For computing the basis EPS we have to determine the number of ordinary shares outstanding at…

Q: Bramble Corp.'s balance sheet reported the following: Capital stock outstanding, 5,000 shares, par…

A: The treasury stock is the purchase of its own share by the company.

Q: On January 1, Puroland Corporation was incorporated, with 100,000 authorized ordinaryshares of P100…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of…

A: a.

Q: On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock…

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

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Preparing journal entries for treasury stock:

Q: Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of…

A: Formula: Earnings per share = Net income / Weighted average number of equity shares

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: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A:

Q: Nasser Inc. had the following transactions pertaining to stock investments.   Jan. 1 Purchased…

A: Journal Entry refers to the first step in the accounting cycle. It is used to record all the…

Q: Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake…

A: a.

Q: Prepare the journal entries for the following transactions for Batson Co. Sept. 1 Batson Co.…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue…

A: Date Accounts title and Explanation Debit ($) Credit ($) 1-Mar Treasury stock (2,000 x $2) $4,000…

Q: Crane Company's balance sheet reported the following: Capital stock outstanding, 4,000 shares, par…

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

Q: Splish Brothers Inc. had the following transactions during the current period. Mar. 2   Issued…

A: The organization can raise fund for the operation song integrity by issuing common stock, preferred…

Q: The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares…

A: Date Particulars Debit Amount Credit Amount Jan 15 Equity share of LMN stock a/c…

Q: On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: At the beginning of the current year, Bella Company was organized and authorized to issue 100,000…

A: The shareholders' equity section displays all the capital, income or losses that belongs to…

Q: Prepare the journal entries for the following transactions for Morgan Co. July    1 Morgan Co.…

A: Given that  morgan co. purchased 32000 shares of Gordon corp.stock Total earnings = $80000 cash…

Q: Marigold Corp. began business by issuing 220000 shares of $5 par value common stock for $23 per…

A: Shareholders' equity balance indicates the investment balance of stockholders. It includes common…

Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…

A: Total fair value of Ordinary shares issued = No. of shares  x Fair value per share = 35000*100 =…

Q: During its first year of operation, Victory Inc. entered into the following transactions relating to…

A: The total shareholders' equity includes the total equity that belongs to the shareholders.

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Shares can be exchanged for cash or issued in exchange for anything other than cash. The term "issue…

Q: When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48…

A: Formulas:

Q: Kingbird, Inc. had the following transactions during the current period. Mar. 2   Issued 4,400…

A: Journal entries means an entry that are recorded in journal of the company for business…

Q: Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with…

A: Formula: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value…

Q: total legal capital

A: Legal capital means the par value or stated value portion of the share capital.

Q: Terrance Company reported $20,000 retained earnings at the beginning of the year. The company…

A: Treasury  shares are share repurchased  by company.These are to be measured at cost. Any difference…

Q: During its first year of operations, Eastern Data Links Corporation entered into the following…

A: The following transactions are journalized to show the calculations in the records of Eastern Data…

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.