Question

Problem 13-02A a-c (Part Level Submission) Riverbed Corporation had the following stockholders' equity accounts on January 1, 2020: Common Stock ($5 par) $550,000, Paid-in Capital in Excess of Par-Common n)Stock $200,000, and Retained Earnings $120,000. In 2020, the company had the foilowing treasury stock transactions on Mar. 1 Purchased 6,500 shares at $8 per share June 1 Sold 1,500 shares at $13 per share Sept.1 Sold 1,500 shares at $10 per share. Dec. 1 Sold 1,000 shares at $6 per share tudy. Riverbed Corporation uses the cost method of accounting for treasury stock. In 2020, the company reported net income of $29,000. ▼ (a) Your answer is correct. Dournalize the treasury stock transactions, and prepar problem. Credit account tities are automaticaly indented when amount is entered., Do not indent manually,) e the closing entry at December 31, 2020, for net income. (Record journal entries in the order presented in the Date tjebit Credit Cash MacBook Pro

Answer 1

Solution c:

Riverbed Corporation
Partial Balance Sheet
As at December 31, 2020
Particulars		Amount
Stockholders Equity:
Paid in capital:
Capital Stock:
Common Stock		$5,50,000.00
Additional Paid in Capital:
Paid-in capital in excess of Par- common stock	$2,00,000.00
Paid-in capital from Treasury stock	$8,500.00
Total Additional Paid in Capital		$2,08,500.00
Total Paid in Capital		$7,58,500.00
Add: Retained earnings		$1,49,000.00
Total Paid in capital and retained earnings		$9,07,500.00
Less:
Less: Treasury Stock		$20,000.00
Total Stockholder's Equity		$8,87,500.00