At the end of 20X2, Provoe Products Ltd. had 222,000 common shares outstanding, with a recorded value
Question:
At the end of 20X2, Provoe Products Ltd. had 222,000 common shares outstanding, with a recorded value in the common share account of $875,000. Retained earnings was $673,500. During 20X3, the following transactions affecting shareholders’ equity were recorded:
a. Split common shares 3-for-1.
b. Purchased 8,000 shares of treasury stock at $4.25 per share.
c. Purchased 6,000 shares of treasury stock at $5 per share.
d. Issued 5,000 shares of treasury stock at $9.25.
e. Issued 6,000 shares of treasury stock at $3.
f. Retired 500 shares of treasury stock.
g. Declared and paid a dividend of $0.25 per common share.
Required:
1. Give entries for each of the above transactions.
2. Give the resulting balances in each capital account. Earnings for 20X3 was $472,000.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel