The company began business on January 1 st . Its Balance Sheet on December 31 st contained
Question:
The company began business on January 1st. It´s Balance Sheet on December 31st contained the Shareholder´s Equity as follows:
Common Stock (5€ par value) | 15.000 | ||
Additional paid in capital | 50.000 | ||
Retained earnings | 5.000 | ||
Less 180 shares held in treasury | -5.000 | ||
Total Shareholder´s Equity | 65.000 | ||
During the year Parmalat engaged in the following capital stock transactions:
- Issued shares for 20€ each.
- Acquired 400 shares for the treasury in a single transaction.
- Reissued some of the treasury shares.
Assume that those were all of the common stock transactions during the year.
The company began business on January 1st. It´s Balance Sheet on December 31st contained the Shareholder´s Equity as follows:
Common Stock (5€ par value) | 15.000 | ||
Additional paid in capital | 50.000 | ||
Retained earnings | 5.000 | ||
Less 180 shares held in treasury | -5.000 | ||
Total Shareholder´s Equity | 65.000 | ||
During the year Parmalat engaged in the following capital stock transactions:
- Issued shares for 20€ each.
- Acquired 400 shares for the treasury in a single transaction.
- Reissued some of the treasury shares.
Assume that those were all of the common stock transactions during the year.
Requirements :
1.- How many shares did Parmalat issued for 20€?
2.- What was the price at which it acquired the treasury shares?
3.-How many shares did it reissue from the stock of treasury shares?
4.- What was the price at which it reissued the treasury shares?
5.- What journal entries did it make during the year?
Essentials Of Statistics For Business And Economics
ISBN: 9781305081598
7th Edition
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam