Exercise 13-30

Treasury Stock: Par Value and Cost Methods

The stockholders' equity of Thomas Company as of December 31, 2012, was as follows:

Common Stock, $1 par, authorized 275,000 shares;

240,000 shares issued and outstanding $240,000

Paid-in capital in excess of par $3,840,000

Retained Earnings $900,000

On June 1, 2013, Thomas reacquired 15,000 shares of its common stock at $16. The following transactions occurred in 2013 with regard to these shares.

I am having a problem with this last two parts, if you could help, I would appreciate very much.

Thank you,

Sharon

Part 1b.

Stockholders' Equity Section of the Balance Sheet
For Year Ending December 31, 2013
Contributed capital:
Common Stock $1 par		$
Paid In Capital in excess of Par
Paid In Capital in excess of Treasury Stock
Retained Earnings
Total contributed capital and retained earnings		$
Less: Treasury Stock at cost
Total stockholders' equity		$

2. Using the par value method to account for treasury stock: a. Prepare the journal entries to record all treasury stock transactions in 2013. If an amount box does not require an entry, leave it blank.

Using T account

June 1

Treasury Stock

Paid in Capital in excess of Par

Paid in capital from treasury stock

Cash

Reacquired 15,000 shares of common stock

July 1

Cash

Treasury Stock

Paid in excess of par

Sold 5,000 shares of treasury stock

August 1

Cash Stock

Paid In Capital in excess of par

Sold 7,000 shares of treasury stock

September 1

Common Stock

Treasury Stock

Retired 1,000 shares of treasury stock

2b. Prepare the Stockholders' Equity section of the balance sheet at December 31, 2013, assuming Retained Earnings of $1,005,000 (before the effects of treasury stock transactions).

Thomas Company
Stockholders' Equity Section of the Balance Sheet
For Year Ending December 31, 2013
Contributed capital:
Common Stock, $1 Par		$
Less: Treasury Stock
Common stock outstanding		$
Paid- In Capital in excess of Par
Paid-in Capital from Treasury Stock
Total contributed capital		$
Retained Earnings
Total stockholders' equity		$