Question

Required information The following information applies to the questions displayed below) Worldwide Company obtained a charter from the state in January that authorized 200.000 shares of common stock. $10 par value. During the first year, the company earned $37,900, declared no dividends, and the following selected transactions occurred in the order glven: a. Issued 57.000 shares of the common stock at $11 cash per share. b. Reacquired 1,700 shares at $14 cash per share from stockholders; the shares are now held in treasury. C. Reissued 850 of the shares in transaction (b) two months later at $17 cash per share. Required: 1. Indicating the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) Assets = Liabilities + Stockholders' Equity

Answer 1

	Asset		=	Liabilities		+	Stockholder's Equity
a.	Cash	$                 6,27,000	=			+	Common stock	$                5,70,000
							Additional Paid - in - capital - Common stock	$                    57,000
b.	Cash	$                   -23,800	=			+	Treasury Stock	$                  -23,800
c.	Cash	$                    14,450	=			+	Treasury Stock	$                    11,900
							Additional Paid - in - capital - Treasury stock	$                      2,550