The following information pertains to Kwon Corp. at January 1, 2010. Common stock , $10 par, 50,000
Question:
The following information pertains to Kwon Corp. at January 1, 2010.
Common stock, $10 par, 50,000 shares authorized,
2,000 shares issued and outstanding $20,000
Paid-in capital in excess of par, common stock 15,000
Retained earnings 65,000
Kwon Corp. completed the following transactions during 2010:
1. Issued 2,000 shares of $10 par common stock for $25 per share.
2. Repurchased 200 shares of its own common stock for $22 per share.
3. Resold 50 shares of treasury stock for $26 per share.
Required
a. How many shares of common stock were outstanding at the end of the period?
b. How many shares of common stock had been issued at the end of the period?
c. Organize the transactions data in accounts under the accounting equation.
d. Prepare the stockholders’ equity section of the balance sheet reflecting these transactions. Include the number of shares authorized, issued, and outstanding in the description of the common stock.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a b Common Stock Issued Outstanding Beginning Number of Shares 2000 2000 Issued This P...View the full answer
