Question

The following information pertains to JAE Corp. at January 1, 2018: Common stock, $ 9 par, 15,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $ 27,000 15,800 51,100 JAE Corp. completed the following transactions during 2018: 1. Issued 900 shares of $9 par common stock for $30 per share 2. Repurchased 160 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 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. Complete this question by entering your answers in the tabs below. Req A and B Reg A and B Reqc ReqC Req D Reg D Prepare the stockholders' equity section of the balance sheet reflecting these transactions. JAE CORPORATION Balance Sheets (Partial) As of December 31 Stockholders' Equity Total paid-in capital Total stockholders' equity $ 0

Answer 1

Solution a:

Outstanding share at end = 3000 + 900 - 160 + 50 = 3790 shares

Solution b:

Issued shares at end = 3000 + 900 = 3900 shares

Solution c:

JAE Corporation
Accounting Equation for the year 2018
Event no.	Assets	=	Liabilities	+	Stockholders' Equity
	Cash				Common Stock	+	Paid in capital in excess Common stock	+	Paid in capital in excess Treasury stock	-	Treasury Stock	+	Retained Earnings
Beg. Bal.					$27,000		$15,800						$51,100
1	$27,000				$8,100		$18,900
2	-$4,320										$4,320
3	$1,400								$50		-$1,350
End. Bal.	$24,080		$0		$35,100		$34,700		$50		$2,970		$51,100

Solution d:

JAE Corporation
Balance Sheet (Partial)
As of December 31
Stockholders' Equity:
Common Stcok, $9 Par,11000 shares authorized, 3900 shares issued and 3790 shares outstanding	$35,100
Paid in capital in excess Common stock	$34,700
Paid in capital in excess Treasury stock	$50
Total paid in Capital		$69,850
Add: retained earnings		$51,100
Less: Treasury stock		-$2,970
Total Stock holders Equity		$1,17,980