Question

The following information pertains to JAE Corp. at January 1, 2018: Common stock, $10 par, 8,000 shares authorized, 1,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $16,000 13,100 50,200 JAE Corp. completed the following transactions during 2018: 1. Issued 1,150 shares of $10 par common stock for $31 per share. 2. Repurchased 210 shares of its own common stock for $28 per share. 3. Resold 50 shares of treasury stock for $29 per share. Required: a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Include the number of shares authorized, issued, and outstanding in the description of the common stock.

Answer 1

Solution a) shares of Commen stock entstanding at the end of persod = 1600 + 1150 - 210 + 50 = 2590 b) shares of common stock had been issued at end of period - 1600 + 1150 . = 2250 TAE Corp Effects of Transcations on General ledger stockholders equity Assets - Liabilities, Event I cash emman APIC - Common Stock Stock Apic - treasury stock + 35650 11500 24120 (5880) + (5860) 1400 1450 - + 27500 Stockholder equity for the year ending Dec 31, 2018 Common Stock ( 8c0c shares authorized, 2750 shares Issued 2590 Shares outstanding) Additional poild in capital Commen stock Addetional pard in Capital - Treasury Stock Total pard in capital 37250 50 64800

Retalned Earnings 50200 115000 4480 subtotal Less: Treasury stock Total stockholders equity 110520