Question

The following information pertains to JAE Corp. at January 1, Year 1: Common stock, $11 par, 13,000 shares authorized, 2,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $28,600 16,900 73,600 JAE Corp. completed the following transactions during Year 1: 1. Issued 1,100 shares of $11 par common stock for $26 per share. 2. Repurchased 180 shares of its own common stock for $23 per share. 3. Resold 50 shares of treasury stock for $24 per share. Required a. How many shares of common stock were outstanding at the end of the period? Outstanding shares at the end of the period

Sorry for the long post, just need some help :)

Answer 1

Outstanding shares at the end of the period = 2,600+1, 100-180+50 =3,570 b Issued shares = 2,600+1,100 = 3,700 C Transaction Credit Debit 28,600 Account title Cash (1100x$26) Common stock (1,100x$11) Paid in capital in excess of par-Common stock 12,100 16,500 2 Treasury stock (180x$23) 4,140 Cash 4,140 1,200 Cash (50 x $24) Treasury stock (50 x $23) Paid in capital in excess from treasury stock 1,150 50

Cash Beg. Bal. Beg. Bal. 1 Common stock 28,600 12,100 28,600 1,200 25,660 End. Bal. End. Bal. 40,700 Treasury stock PIC in excess of par, CS Beg. Bal. 16,900 16,500 Beg. Bal. 1/ 4,140 1,150 End. Bal. 33,400 End. Bal. 2,990 PIC in excess of cost, Treasury stock Beg. Bal. End. Bal.

40,700 33,400 50 Stockholders' equity Common stock, $11 par Paid in capital in excess of par, Common stock Paid in capital in excess of cost, Treasury stock Total paid in capital Retained earnings Less: Teasury stock Total stockholders' equity 74,150 73,600 -2,990 144,760