Question

Flounder Company had the following stockholders' equity as of January 1, 2020. Common stock, $5 par value, 18,900 shares issued Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity $94,500 306,000 317,000 $717,500 During 2020, the following transactions occurred. Feb. 1 Mar. 1 Mar. 18 Apr. 22 Flounder repurchased 1,900 shares of treasury stock at a price of $18 per share. 810 shares of treasury stock repurchased above were reissued at $16 per share. 470 shares of treasury stock repurchased above were reissued at $14 per share. 550 shares of treasury stock repurchased above were reissued at $19 per share.

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Feb-01	Treasury Stock(1,900*$18)		34,200
		Cash			34,200
	Mar-01	Retained Earnings(810*$2)		1,620
		Cash(810*$16)		12,960
		Treasury Stock(810*$18)			14,580
	Mar-18	Retained Earnings(470*$4)		1,880
		Cash(470*$14)		6,580
		Treasury Stock(470*$18)			8,460
	Apr-22	Cash(550*$19)		10,450
		Treasury Stock(550*$18)			9,900
		Retained Earnings(550*$1)			550
		FLOUNDER COMPANY
		Stockholder's Equity Section
		April 30,2020
		Common Stock,$5 par vale,18,900 shares outstanding		$        94,500
		Paid in capital in excess of par-Common Stock		$     3,06,000
		Total Paid-in capital		$     4,00,500
		Retained Earnings(Opening)		$     3,17,000
		Less:Adjustments made		$         -2,950
		Retained Earnings(Closing)		$     3,14,050
		Less:Treasury Stock		$         -1,260
		Total Stockholders Equity		$     3,12,790