Han Tire Corporation has outstanding 10,000 shares of preferred stock, $10 par, and also 10,000 shares...

 

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Han Tire Corporation has outstanding 10,000 shares of preferred stock, $10 par, and also 10,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the preferred stock is $40,000: the retained earnings balance is $81,600. The company then entered into the following transactions in 2020. Jan. 15, 2020 Purchased 500 shares of its common stock at $30 per share for the treasury. Mar. 1, 2020 Sold 100 shares of the common treasury stock for $26 per share. Oct. 15, 2020 Sold 50 shares of the common treasury stock for $32 per share. Dec. 31, 2020 Sold 50 shares of the common treasury stock for $29 per share. Required a. Provide entries to record these treasury stock transactions. b. Prepare the resulting stockholders' equity section of the balance sheet after these transactions. Han Tire Corporation has outstanding 10,000 shares of preferred stock, $10 par, and also 10,000 shares of no-par common stock sold initially for $20 per share. Paid-in capital in excess of par on the preferred stock is $40,000: the retained earnings balance is $81,600. The company then entered into the following transactions in 2020. Jan. 15, 2020 Purchased 500 shares of its common stock at $30 per share for the treasury. Mar. 1, 2020 Sold 100 shares of the common treasury stock for $26 per share. Oct. 15, 2020 Sold 50 shares of the common treasury stock for $32 per share. Dec. 31, 2020 Sold 50 shares of the common treasury stock for $29 per share. Required a. Provide entries to record these treasury stock transactions. b. Prepare the resulting stockholders' equity section of the balance sheet after these transactions.

Answer rating: 100% (QA)

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