Question

Saved The following information pertains to JAE Corp. at January 1, 2018 Common stock, $10 par, 20,008 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $20,000 15,000 82,000 JAE Corp completed the following transactions during 2018 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for $26 per share. 3. Resold 200 shares of treasury stock for $30 per share Required: n. 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 Complete this question by entering your answers in the tabs below. Req A and B Rea c Req D Organize the transactions data in accounts under the accounting equation. (Enter any decreases to account balances with a minus siqn) Iquation for the Year 2018 Paid in Capital Paid in Cepital Teasary くPrev 90, 9111 Next Type here to search

Answer 1

Answer

• Answer ‘a’

No. of shares outstanding at the end of period

=2000 share in beginning + 3000 issued – 500 re purchased + 200 re issued

= 4700 shares

• Answer ‘b’

Shares that had been issued at the end of period = 2000 of beginning + 3000 issued additional

= 5000 shares.

• Answer ‘c’

Event	Cash	Liabilities	Common Stock	PIC in excess - Common Stock	PIC in excess - Treasury Stock	Treasury Stock	Retained earnings
Beg bal			$          20,000.00	$          15,000.00			$        82,000.00
1	$                                    75,000.00		$          30,000.00	$          45,000.00
2	$                                  (13,000.00)					$         13,000.00
3	$                                       6,000.00				$                800.00	$         (5,200.00)
End bal	$                                    68,000.00	$                          -	$          50,000.00	$          60,000.00	$                800.00	$            7,800.00	$        82,000.00

• Answer ‘d’

Stockholder's Equity:
Common Stock	$           50,000.00
PIC in excess - Common Stock	$           60,000.00
PIC in excess - Treasury Stock	$                 800.00
Total Paid in Capital		$        110,800.00
Retained Earnings		$          82,000.00
Less: Treasury Stock		$            7,800.00
Total Stockholder's Equity		$          74,200.00