Question

The following information pertains to JAE Corp. at January 1, Year 1: Common stock, $10 par, 14,000 shares authorized, 2,800 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $28,000 14,500 64,400 JAE Corp. completed the following transactions during Year 1: 1. Issued 750 shares of $10 par common stock for $31 per share. 2. Repurchased 160 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? Outstanding shares at the end of the period 3,440 b. How many shares of common stock had been issued at the end of the period? < Prev 4 of 6 Nex

Answer 1

a) Outstanding shares at the end of the period= Beginning shares+Issue shares-Repurchased+Resold

= 2800+750-160+50= 3440 shares

b) Issued shares at the end of the period= Beginning shares+Issue shares

= 2800+750= 3550 shares

Transaction	General Journal	Debit	Credit
1	Cash (750*$31)	$23250
	Common stock (750*$10)		$7500
	Paid in capital in excess of par, Common stock (23250-7500)		$15750
	(To record common stock issued)
2	Treasury stock (160*$28)	$4480
	Cash		$4480
	(To record treasury stock purchased)
3	Cash (50*$29)	$1450
	Paid in capital in excess of cost, Treasury stock (1450-1400)		$50
	Treasury stock (50*$28)		$1400
	(To record treasury stock sold)

Cash					Common Stock
Beg. Bal.	$0				Beg. Bal.			$28000
1	23250	2	4480				1	7500
3	1450
End. Bal.	$20220				End. Bal.			$35500
PIC in Excess of Par, CS					Treasury Stock
Beg. Bal.			$14500		Beg. Bal.	$0
1			15750		2	4480	3	1400
End. Bal.			$30250		End. Bal.	$3080
PIC in Excess of Cost, TS
Beg. Bal.			$0
		3	50
End. Bal.			$50

Stockholders' Equity
Common stock	$35500
Paid in capital in excess of par, Common stock	30250
Paid in capital in excess of cost, Treasury stock	50	65800
Retained earnings		64400
Total paid-in-capital		130200
Less: Treasury stock		(3080)
Total stockholders' equity		$127120