Question

Southern Amusements Corporation had the following stockholders’ equity on November 30:
Stockholders’ Equity
Paid-In Capital:
Common Stock—$ 5 Par Value; 1,300 shares authorized,
290 shares issued and outstanding ............ $ 1,450
Paid- In Capital in Excess of Par—Common ......... 13,500
Total Paid- In Capital .................. 14,900
Retained Earnings .................... 57,000
Total Stockholders’ Equity ............... $ 71,950
On December 30, Southern purchased 275 shares of treasury stock at $ 14 per share.

Requirements
1. Journalize the purchase of the treasury stock.
2. Prepare the stockholders’ equity section of the balance sheet at December 31. Assume the balance in retained earnings is unchanged from November 30.
3. How many shares of common stock are outstanding after the purchase of ­treasury stock?



$1.99
Sales1
Views104
Comments0
  • CreatedJanuary 16, 2015
  • Files Included
Post your question
5000