On January 1, 1997, Johnson Soap Corporation issued 20,000 shares of $20 par value common stock at $50 per share On January 15 1997 Johnson purchased 50 shares of its own common stock at $55 per share On March 1, 1997, 20 of the treasury shares were resold at $58 The balance in retained earnings wa...

Requirement 1 Requirement a Requirement b Cost Method Par Value Method Debit Credit Debit C redit To ...

On January 1, 1997, Johnson Soap Corporation issued 20,000 shares of $20 par value common stock at

Question:

On January 1, 1997, Johnson Soap issued 20,000 shares of $20 at $50 per share. On January 15. 1997. Johnson purchased 50 shares of its own at $55 per share. On March 1, 1997, 20 of the treasury shares were resold at $58. The balance in retained earnings was $25,000 prior to these transactions.
Required:
1. Give all entries indicated in parallel columns, assuming application of (a) the cost method and (b) the method.
2. Give the resulting balance in each one of the stockholders' equity accounts for each method.
3. Assume that on March 30, 1997 all remaining treasury stock shares are retired. Show the journal entries for (a) the cost method, and (b) the method.
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...