Question: In the below answer, for the problem - additional paid-in-capital Treasury Stock - 14200 - How was this calculated?

---------------------------------

Question: In the below answer, for additional paid-in-capital -- Treasury Stock - 14200 - How was this calculated?

THOMPSON SERVICES INC.
General journal for the year ending December 31, 2018
Date	Account title	Debit	Credit
Jan.3	Dividend	382000
	Dividend Payable		382000
	(Delcaration of $1 per share dividend)
Feb.15	Dividend Payable	382000
	Cash		382000
	(Payment of cash dividend declared on Jan.3)
Apr.12	Treasury Stock	240000
	Cash		240000
	(Purchase of 6,000 shares of own stock @$40 per share)
May.9	Cash	176000
	Treasury Stock		160000
	Additional paid-in-capital -- Treasury stock		16000
	(Re issue of 4,000 shares of treasury stock @44 per share)
June.1	Retained Earnings	798000
	Stock dividend distributable		798000
	(Declaration of 5% stock dividend - 5% of 380,000 @$42)
June.30	Stock dividend distributable	798000
	Common stock		19000
	Additional paid-in-capital -- Common Stock		779000
	(Stock dividend of 19,000 shares distributed)
Aug.4	Cash	22200
	Additional paid-in-capital -- Treasury stock	1800
	Treasury Stock		24000
Dec.31	Income Summary	1928000
	Retained Earnings		1928000
	(Net income for the year closed to retained earnings)
Dec.31	Retained Earnings	382000
	Dividend		382000
	(Dividend acount closed to retained earnings)

b.

Stockholders' equity
Capital stock, $1 par value, 500,000 shares authorized	401000
401,000 shares outstanding
Additional paid-in-capital -- Capital Stock	4981000
Additional paid-in-capital -- Treasury Stock	14200
Total paid in capital	5396200
Retained earnings *	3452600
Treasury Stock (1,400 shares )	-56000
Total Stockholders' equity	8792800
Balance as at January 1, 2018	2704600
Add: Net income for the year	1928000
Less: Cash dividend	-382000
Less: Stock Dividend	-798000
Balance as at December 31, 2018 *	3452600

c. Maximum cash dividend payable = $3,396,600 ($3,452,600 - $56,000)

Problem Set A 553 L012-4, LO12-8 PROBLEM 12.6A Recording Stock Dividends and Treasury Stock Transactions At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock- holders' equity section of its balance sheet. Stockholders' equity: Capital stock, $1 par value. 500.000 shares authorized 382,000 issued and outstanding $382.000 Additional paid in capital capital stock 4,202,000 Total paid-in capital $4,584,000 Retained earnings 2,704,600 $7,288,600 Total stockholders' equity a Apr. 12 The transactions relating to stockholders' equity during the year are as follows. Jan. 3 Declared a dividend of Si per share to stockholders of record on January 31, payable on February 15. Feb. 15 Paid the cash dividend declared on January 3. The corporation purchased 6,000 shares of its own capital stock at a price of $40 per share May 9 Reissued 4.000 shares of the treasury stock at a price of 544 per share. June Declared a 5 percent stock dividend to stockholders of record at June 15, to be distributed on June 30. The market price of the stock at June I was $42 per share. (The 2,000 shares remaining in the treasury do not participate in the stock dividend.) June 30 Distributed the stock dividend declared on June 1 Reissued 600 of the 2.000 remaining shares of treasury stock at a price of S37 1 Aug. 4 per share Dec. 31 The Income Summary account, showing net income for the year of $1.928.000, was closed into the Retained Earnings account. Dec. 31 The $382,000 balance in the Dividends account was closed into the Retained Earnings account Instructions a. Prepare in general journal form the entries to record these transactions. b. Prepare the stockholders' equity section of the balance sheet at December 31, 2018. Use the format illustrated in Exhibit 12-6. Include a supporting schedule showing your computation of retained earnings at that date. c. Compute the maximum cash dividend per share that legally could be declared at December 31. 2018, without impairing the paid-in capital of Thompson Service. (Hint: The availability of retained carnings for dividends is restricted by the cost of treasury stock owned.)