Sheffield Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($4 par)...

  

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Sheffield Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($4 par) $440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock. transactions. Mar. 1 Purchased 5,500 shares at $9 per share. June 1 Sold 1,000 shares at $12 per share. Sept.1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,000 shares at $7 per share. Sheffield Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2020 for net income. (Record journal entries in the order presented in the problem. (b) Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. (c) Prepare the stockholders' equity section for Sheffield Corporation at December 31, 2020 Sheffield Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($4 par) $440,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2020, the company had the following treasury stock. transactions. Mar. 1 Purchased 5,500 shares at $9 per share. June 1 Sold 1,000 shares at $12 per share. Sept.1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,000 shares at $7 per share. Sheffield Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $30,000. (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2020 for net income. (Record journal entries in the order presented in the problem. (b) Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. (c) Prepare the stockholders' equity section for Sheffield Corporation at December 31, 2020

Answer rating: 100% (QA)

Solution a Date Particulars Debit Credit March 1 Treasury Stock ac 49500 To Cash ac 49500 being Trea... View the full answer