Reconstructing transactions involving shareholders' equity. Fisher Company began business on January 1. Its balance sheet on December 31 contained the shareholders' equity section in Exhibit 14.7. During the year, Fisher Company engaged in the following transactions:

(1) Issued shares for $15 each.

(2) Acquired a block of 600 shares for the treasury in a single transaction.

(3) Reissued some of the treasury shares

(4) Sold for $ 10,000 securities available for sale with original acquisition cost of $6,000. At the end of the year, securities available for sale, still on hand, had originally cost $12,000 and had a fair value of $l4,000.

Assuming that these were all of the common stock transactions during the year and that the firm used the cost method to account for treasury sick transactions, answer the following questions:

a. How many shares did Fisher Company issue for $15?

b. What was the price at which it acquired the treasury shares?

c. How many shares did it reissue from the block of treasury shares?

d. What was the price at which it reissued the treasury shares?

e. What journal entries did it make during the year for items (1) to (4)?

f. In which statement or statements will Fisher Company report the various gains and losses on its holdings of securities available forsale?

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Fisher Company Shareholders' Equity as of December 31 (Problem 31) EXHIBIT 14.7 Common Stack ($10 par value) . Additional Paid-In Capital Retained Earnings ... Plus Unrealized Holding Gain on Securities Available for Sale Less 360 Shares Held in Treasury-At Cost Total Shareholders' Equity .$60,000 31,440 12,000 2,000 (7,200) $98,240