Question

	TheNichols Corp. had the following treasury stock transactions.
1-Sep	The company purchased 1,000 shares of its common stock for $40 per share
	for the treasury.
1-Oct	400 of the treasury shares were sold for $42 per share.
1-Nov	300 treasury shares were sold at $35 per share.
	Prepare the necessary journal entries for the above transactions.

The following accounts appear in the ledger of Holiday Company at December 31, 2019.
Common Stock, $1 stated value, 100,000 shares authorized, 30,000 shares
issued			30,000
Common Stock Dividend Distributable			10,000
Paid in capital in excess of stated value - common stock			500,000
6 % Preferred Stock, $50 par value, 10,000 shares authorized, 1,000
shares issued			50,000
Retained Earnings			40,000
Treasury Stock (1,000 shares common)			15,000
Paid in capital in excess of par - preferred stock			300,000
Paid in capital - Treasury stock			5,000
Prepare the stockholders' equity section of the balance sheet at December 31, 2019
Holiday Company
Balance Sheet (partial)
as of December 31, 2019

Answer 1

Answer to Question 1:

Credit Date Sept. 01 Debit 40,000 40,000 Oct. 01 16,800 General Journal Treasury Stock (1,000 * $40) Cash Cash (400 * $42) Treasury Stock (400 * $40) Paid-in Capital-Treasury Stock Cash (300 * $35) Paid-in Capital-Treasury Stock Retained Earnings Treasury Stock (300 * $40) 16,000 800 Nov.01 10,500 800 700 12,000

Answer to Question 2:

$ $ 50,000 300,000 Holiday Company Balance Sheet (Partial) As of December 31, 2019 Stockholders' Equity Paid-in Capital: 6 % Preferred Stock, $50 par value, 10,000 shares authorized 1,000 shares issued Paid in capital in excess of par - preferred stock Common Stock, $1 stated value, 100,000 shares authorized, 30,000 shares issued Common Stock Dividend Distributable Paid in capital in excess of stated value - common stock Paid in capital - Treasury stock Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (1,000 shares common) Total stockholders' equity 30,000 10,000 500,000 5,000 $ 895,000 40,000 935,000 15,000 920,000 $