Question

Problem 11-2A Pina Colada Corp. had the following stockholders' equity accounts on January 1, 2019: Common Stock ($4 par) $415,880, Paid-in Capital in Excess of Par-Common Stock $180,250, and Retained Earnings $113,550. In 2019, the company had the following treasury stock transactions. Mar. 1 Purchased 5,840 shares at $8 per share June 1 Sold 1,030 shares at $13 per share. Sept. 1 Sold 1,370 shares at $11 per share Dec. 1 Sold 1,330 shares at $7 per share. Pina Colada Corp. uses the cost method of accounting for treasury stock. In 2019, the company reported net income of $27,840. Your answer is correct. Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2019, for net income. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1Treasury Stock 46720 cash 46720 une 1Cash 13390 Treasury Stock 8240 Policy I All Rights Reserved. A Division of Version 4.24.14.7 June 1 Cash 13390 Treasury Stock 8240 Paid-in Capital from Treasury Stock 5150 Cash Sept. 1 15070 Treasury Stock 10960 Paid-in Capital from Treasury Stock 4110 Dec. 1 Cash 9310 Paid-in Capital from Treasury Stock 1330 Treasury Stock 10640 Dec. 31 Income Summary 27840 Retained Earnings 27840 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT PolicyI 2000-2019 John Wiley & Sons Inc. All Rights Reserved. A Division of John Wiley & Sons Inc Version 4.24.14.7 Your answer is partially correct. Try again. Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. (Post to T-accounts.) (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock 1330 June 1 Dec. 1 5150 7930 Sept. 1 Dec. 31 4110 9260 Dec. 31 Treasury Stock 46720June 1 9260 Dec. 31 Mar. 1 8240 Sept. 1 10960 Dec. 1 10640 46720 Dec. 31 16880 Dec. 31 Retained Earnings Dec. 31 Retained Łarnings 29840 Jan. 1 Dec. 31 113550 Dec. 31 111550Dec. 31 27840 141390 Dec. 31 141390 Dec. 31 Your answer is partially correct. Try again. Prepare the stockholders' equity section for Pina Colada Corp. at December 31, 2019. (Enter the account name only and do not provide the descriptive information provided in the question.) Pina Colada Corp. Balance Sheet (Partial) December 31, 2019 Stockholders' Equity Paid-in Capital Capital Stock Capital Stock 180250 Paid-in Capital in Excess of Par-Common Stock Total Capital Stock 1663520 Common Stock Total Capital Stock 1663520 Common Stock Question Attemots: 1 of 15 usedSAVE FOR LATER SUBNIT ANSWER

Answer 1

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Paid in capital from Treasury Stock
Debit		Debit			Stockholder's Equity
Dec 1	$    1,330	Jun 1	$    5,150		Paid in capital
		Sep 1	$    4,110		Capital Stock
					Common Stock		$   415,880
		Dec 31	$    7,930
					Paid in capital in excess of stated-common		$   180,250
Treasury Stock					Paid in capital in excess of par-Treasury		$        7,930
Debit		Debit
Mar 1	$ 46,720	Jun 1	$    8,240		Total Paid In capital		$   604,060
		Sep 1	$ 10,960		Retained earning		$   141,390
		Dec 1	$ 10,640		Sub total		$   141,390
					Less; Treasury Stock		$    -16,880
Dec 31	$ 16,880				Total Stockholders Equity		$   124,510
Retained Earning
Debit		Debit
		Beginning Balance	$113,550
		Dec 31	$ 27,840
		Dec 31	$141,390